Asian Stock Market: Kick-starts the key week with cautious optimism
- 28th September 2020
- Posted by: Hakeem
- Category: FOREX LATEST NEWS DAILY
- Asian equities print mild gains as hopes of virus vaccine, American stimulus confront worsening pandemic.
- Chinese frontiers pleased the buyers with gap-up opening after weekend news marked upbeat Industrial Profits.
- US Presidential Election debate, Brexit and crucial data to look for ahead.
Asian shares take clues from China and the US catalysts while trimming the monthly losses ahead of Monday’s European session. To portray the same, the MSCI index of Asia-Pacific shares outside Japan rises 0.65% intraday whereas Japan’s Nikkei 225 adds near 0.70% as we write. It should be noted that the MSCI gauge is up for snapping the previous three-month rally amid the coronavirus (COVID-19) woes.
The weekend update from Johnson and Johnson propelled the vaccine hopes and so does China’s industrial firms’ profits that grew for the fourth month in a row. Also helping the mood were updates that the US House Speaker Nancy Pelosi is a bit optimistic for the aid package discussion as well as the District Court of Columbia’s injunction against the Trump administration’s previous order to ban TikTok downloads starting from September 28. To challenge the bulls, mixed headlines concerning the Brexit and emerging market currencies’ performance play their respective roles.
Australia’s ASX 200 and New Zealand’s NZX 50 seems to trim the early-day gains amid a lack of major data/events. News that China will hold military exercises in the southern Yellow Sea from Monday until Wednesday is likely waning the optimism off-late.
On the contrary, South Korea’s KOSPI becomes the regional leader with a 1.25% run-up, followed by 1.15% gains of India’s BSE Sensex and around 1.0% addition to the Hong Kong’s Hang Seng quotes.
It should also be noted that the S&P 500 Futures add around 0.70% by the time of press and the US 10-year Treasury yields are little changed near 0.66% as we write.
While Monday offers no major data/events, speculations concerning the debate between American President Donald Trump and his rival Joe Biden will occupy the headlines going forward. Also in the spotlight will be Brexit negotiations and chatters concerning the much-awaited COVID-19 aid package from America. Also, China’s official PMI and the US employment data for September are other extra indicators to watch.