Home Forex News Asian Stock Market: Stimulus Woes as ASX 200 Bucks the Downtrend Despite...

Asian Stock Market: Stimulus Woes as ASX 200 Bucks the Downtrend Despite COVID-19

  • Asia-Pacific remains on the back foot as worldwide markets are still disappointed over US stimulus deadlock and virus’ spread.
  • RBA Governor Lowe guaranteed more vulnerable rates, Aussie/China data also preferred the need for further stimulus.
  • US-China tussle, Brexit woes offer other challenges, traders remain careful ahead of the key events.

Equities in the Asia-Pacific area region stay mostly downbeat, aside from Australia, as worldwide traders stress over the COVID-19 wave 2.0, just as over no US stimulus before the American presidential election. MSCI’s index of Asia-Pacific shares outside Japan dropped 0.75%, with Japan’s Nikkei 225 declining over 0.50% during the pre-European session on Thursday. 

Australia’s ASX 200, up 0.60% intraday, appears to manage the products of RBA Governor Philip Lowe’s availability for additional improvement, yet New Zealand’s NZX 50 decreases over 0.80% on a day to follow Wall Street. Further, Chinese benchmarks were likewise down as headlines inflation data from the dragon nation renewed economic fears. Ongoing remarks over US-Taiwan companionship highlighted odds of Sino-American jitters and weighed on the risk barometers.

Moreover, shares in Hong Kong were down over 1.0%. Hang Seng, presently trading at – 1.30% to 24,332, followed hints of further geopolitical tension at home, after Chinese President Xi Jinping’s push for youth to return to the mainland. Stocks in South Korea bore the burden of the widespread virus with 1.14% intraday losses, and so did Indonesia’s IDX 50, being down 0.60% at this point. India’s BSE Sensex took signs from S&P 500 Futures, as both were down close to 0.50% in the midst of a broad risk-off mood.

Other than the US Treasury Secretary Steve Mnuchin’s pessimistic words, COVID-19 updates from the UK and European countries also keep the risk-tone heavy. Similarly, fears of no-deal Brexit ahead of the present EU summit dragged the US 10-year Treasury yields down around 0.71%. 

While the economic calendar offers fewer data in the European and the US session, updates from Brussels and the White House will be important. Besides, the vaccine news will likewise offer near-term direction to the markets, after the most recent halt in trials had ruined investors’ mood.


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