Trade optimism keeps Asian shares on the front foot
- Asian stocks praise increasing odds of the US-China phase-one deal.
- Doubts over China’s housing market, downbeat Industrial Profits guard the upside.
- Key US data will be watched to confirm the further existence of the Fed’s easy money policy.
In addition to the United States (US) President Donald Trump’s repeated signals of an initial trade deal with China, other sources, as per the Wall Street Journal (WSJ), also indicate that there is a major push to get the deal done and Phase One deal text is being finalized. This adds to the previous updates about the phone calls between the US and Chinese trade negotiators. As a result, the Asian stocks manage to remain mildly bid while heading into the European open on Wednesday.
Also, expectations of a global rebound by the JP Morgan and likely tariff rollback by the US, anticipated by the analysts at Goldman Sachs, add to the market optimism.
On the contrary, Moody’s analysis citing risks to Chinese housing and downbeat Industrial Profits from the dragon nation challenges the trading sentiment.
As a result, the US 10-year Treasury yields seesaw around 1.74% while MSCI’s index of Asia-Pacific shares mark 0.21% profit by the press time. It should also be noted that comments in support of further monetary policy easing by the Bank of Japan (BOJ) board member Sakurai helped Japan’s NIKKIE to witness the gain of 79 points, +0.34%, while writing.
The Reserve Bank of New Zealand (RBNZ) Governor failed to provide any noticeable push to the NZX 50, +0.70% now. Though, expectations of the US-China deal and further easy money policy from China please Australian stock buyers, as reflected in 1.0% positive mark of the ASX200.
Further, Chinese equities flash mixed signals amid trade hope and downbeat fundamentals at home whereas Hong Kong’s HANG SENG stay unchanged at 26,912. Additionally, India’s BSE SENSEX portrays trade optimism amid a lack of major driving while taking the bids to 40,933, +0.30%.
Other than the aforementioned catalysts, rising hopes that the US Federal Reserve (Fed) will keep the easy money policy going, as per the latest Fedspeak, also please equity buyers. In order to confirm the same, traders will keep eyes over today’s key Gross Domestic Product (GDP), Durable Goods Orders and Core Personal Consumption Expenditure (PCE) Index from the US.