Asian stock market: Bulls focus more on easing lockdowns than trade war fears
- Asian shares hold onto Friday’s gains despite brewing US-China tussle.
- Easing lockdowns in global powerhouses, expectations of further stimulus keep buyers happy.
- A light economic calendar keeps traders on the lookout for qualitative catalysts.
Asian equities cheer the increasing numbers of global economies rolling back the coronavirus (COVID-19) led lockdown restrictions during the early Monday. In doing so, the stocks ignore likely US-China tussle while also paying more attention to the expected increase in government aids to combat the virus.
It should also additionally be noted that news suggested upbeat performance of a triple-drug during the clinical trials also favored the market’s risk-on sentiment.
Amid all these, the MSCI’s index of Asia-Pacific outside Japan rises over 1.0% whereas Japan’s NIKKEI gains 1.30% to 20,445 by the press time pre-European session.
Chinese stocks cheer the People’s Bank of China’s (PBOC) rate cut for standing lending facilities whereas the Indian equity benchmark also adds over 1.0% amid hopes of further stimulus.
Stocks in Australia and New Zealand benefit from signals relating to the fully operated economy while South Korea’s KOSPI failed to cheer the risk-on moves as early indicators suggest the first 10 days of May exports slump over 45%.
It’s worth mentioning that the US 10-year Treasury yields gain 1.3 basis points (bps) to 0.694% but the US stock futures struggle to copy Friday’s Wall Street performance as US President Trump again alleges China for virus outbreak. Also likely to cap the US stocks could be downbeat comments from a Fed policymaker and Treasury Secretary Mnuchin citing further weakness in the employment data.
Given the lack of major data/events on the economic calendar, traders may now keep eyes on the virus/trade updates for near-term direction.