Asian Stock Market: Nikkei outshines, China dwindles amid a sluggish day
- Asian shares trade mixed as China real-estate pokes bulls.
- Climate change talks fail to entertain traders, stimulus hopes join Sino-American headlines to portray mild optimism.
- Dow, S&P 500 refreshed record tops on earnings optimism, Tesla news.
Asia-Pacific equities struggle to track the S&P 500 Futures as European traders brace for Tuesday’s bell.
Although the US-China diplomatic talks and earnings optimism joins the optimism at Wall Street to keep the buyers hopeful, fears relating to the Beijing-based property shares and steady US Treasury yields challenge the bulls.
Amid these plays, MSCI’s index of Asia-Pacific shares outside Japan rise 0.16% whereas Japan’s Nikkie jumps near 2.0% at the latest. Optimism in Tokyo could be linked to the easing of virus-led restrictions after 11 months of tighter activity controls, as well as hopes of further stimulus to overcome the pandemic-led economic hardships.
Elsewhere, Australia’s ASX 200 and New Zealand’s NZX 50 remain lackluster amid indecision in China, as well as fears that the climate controls may escalate the inflation pressure and push policymakers towards tapering and rate hikes. “China has said it will roll out a pilot real estate tax in some regions, adding to existing investor concerns about real estate in the mainland,” said Reuters in this regard.
It’s worth noting that receding covid fears in India and Indonesia helps their respective equity markets whereas the S&P 500 Futures refresh record tops following the Wall Street benchmarks. That being said, Dow and S&P 500 renewed all-time high on Monday as US policymakers, including President Joe Biden, backed expectations. Also fueling the American equities was Tesla’s stellar performance and a firmer start to the earnings season.
Against this backdrop, US 10-year Treasury yields pause after a two-day downtrend while the US Dollar Index (DXY) extends the previous day’s rebound from the monthly low.
Given the mixed performance and wait for the US Q3 GDP, Asian traders should track Wall Street and earnings calendar for fresh impulse.
Read: S&P 500 Future track Wall Street gains to refresh record top, ignore US Treasury yields