Asian Stock Market: Edges lower amid mixed concerns, commodity spill
- Asian equities consolidate early losses amid US stimulus hopes, upbeat China data.
- Covid woes, tapering chatters challenge bulls amid off in Japan.
- Gold stages v-shaped bounce from four-month low, oil stays pressured near 13-day low.
Shares in Asia–Pacific lick their wounds after an offbeat start to the week as market sentiment dwindles amid mixed concerns.
The risk appetite initially soured amid concerns over the Fed’s tapering but progress over the US infrastructure spending talks in the Senate and China’s inflation numbers for July favored the mood of late. That said, MSCI’s index of Asia-Pacific shares outside Japan prints 0.21% intraday gains.
Even as better-than-forecast CPI and PPI data from Beijing favored stocks belonging to the Dragon nation, chatters that virus resurgence will slow China’s economic recovery challenge the bulls. It’s worth noting that Australia’s ASX 200 struggles to follow its largest customer, namely China, as virus woes keep challenging the policymakers despite easing of late.
On the other hand, fresh covid infections in New Zealand drag the NZX50 while Indonesia’s IDX Composite print mild intraday losses and South Korea’s KOSPI remain directionless by the press time.
Indian’s BSE Sensex also prints mild gains amid hopes that the Reserve Bank of India (RBI) will upwardly revise economic forecasts should the latest rebound sustain.
Elsewhere, US 10-year Treasury yields remain lackluster on Japan’s off but stock futures in the West print mild losses as fears of Fed’s tapering and/or rate hike grow stronger after Friday’s US jobs report.
It’s worth noting that gold slumped to the four-month low before bouncing off around $1,687, currently near $1,745, whereas WTI crude oil remains pressured near late July lows surrounding $67.00.
Given the mixed concerns and ongoing chatters over US stimulus, global markets may remain dicey for now. Though, virus updates and stimulus news will be the key to follow for fresh impulse.