Asian stocks: Mildly bid amid cautious trade optimism
- Asian stocks benefit from the US trade rhetoric, China spoils optimism.
- NIKKEI cheers news of Japanese stimulus, ASX 200 benefits from downbeat Aussie data.
- OPEC meeting, RBI decision keep traders guessing.
China’s failure to assent the US President Donald Trump’s trade-positive comments seem to keep an immediate check on the Asian stocks during the pre-European session on Thursday. Markets earlier cheered downbeat data from Australia indicating further RBA rate cut and news of Japan’s extensive stimulus.
The MSCI’s index of Asia-Pacific shares mark 0.3% gains but Japan’s NIKKEI nears 0.70% in green after the Prime Minister (PM) Shinzo Abe announced details of the heavy stimulus plan. Further, Australia’s downbeat Retail Sales and Trade Balance keep up the hopes of further rate cuts by the Reserve Bank of Australia (RBA), which in turn can be witnessed in the ASX 200’s rise to 6,675 or +1.0%.
Moving on, Indonesia’s Consumer Confidence help IDX Composite to mark 0.40% profits while Reuter’s news that the People’s Bank of China (PBOC) will conduct medium-term lending facility operations (MLF) on Friday pleased Chinese stock buyers. Additionally, India’s BSE SENSEX registers 0.20% gain as traders are cautious ahead of the Reserve Bank of India’s (RBI) monetary policy meeting that could offer the sixth rate cut of 2019.
The risk tone seems to lose the previous day’s optimism with the US 10-year treasury yields liquidating two basis points (bps) off its Wednesday’s gains to 1.76 whereas S&P 500 Futures also turns red by the press time.
Other than the RBI meeting, global markets will also keep eyes on the Organization of the Petroleum Exporting Countries (OPEC) meeting in the Austrian capital Vienna. While most oil producers are supporting an extension of the present accord to output cut, Saudi Arabia and Iraq may convey disappointments in bearing the burden alone. It’s worth mentioning that a busy economic calendar and trade/political headlines will entertain market players going forward.