Asian stocks pay a little heed to losses from Indonesia, South Korea
- Shares in Asian fail to follow Wall Street amid risk reset.
- The global rush to counter coronavirus continues with stimulus from New Zealand, Japan.
- Moody’s anticipated no growth in Japan, downbeat figures from China in 2020.
In contrast to Wall Street’s worst selling rout since 1987, Asian equities are comparatively calm with fewer losses ahead of the European session on Tuesday.
That said, MSCI’s index of Asia-Pacific shares outside Japan drop near 0.50% whereas Japan’s NIKKEI mark 0.10% gains by the press time. Moving on, the US 10-year treasury yields recover four basis points to 0.77% while stock futures earlier touched the 4.0% upper limit during early Asia.
BOJ Governor Haruhiko Kuroda recently mentioned, via Reuters, that monetary policy has a role to play in dealing with coronavirus (COVID-19) fallout. The Asian country earlier announced measures worth multibillion dollars to infuse liquidity via bond purchase, dollar-centric operations. Even so, the global rating giant Moody’s cited fears of no growth of the Japanese economy during 2020 while also anticipating a slower expansion of China.
Additionally, New Zealand also released measures to counter the pandemic by allocating 4.0% of the GDP to the cause whereas RBA minutes confirmed further steps to fight against the deadly disease to take place on Thursday. That said, Australia’s ASX 200 and New Zealand’s NZX 50 mark 5.83% and 0.15% by the time of writing. It should also be noted that stocks in China remain mostly weak while Indian shares benefit from the Reserve Bank of India’s (RBI) market operations.
On the contrary, stocks in Indonesia and South Korea mark loses worth 4.18% and 2.77% by the press time as fears of the virus outbreak gets fierce into these nations.
Looking forward, the UK Chancellor Rishi Sunak is likely to announce another good news for the British businesses while US President Donald Trump’s Coronavirus Relief Bill passed through the House of Representatives and will be voted in the Senate.
Other than the COVID-19 concerns and global stimulus, economics from Eurozone, the UK and the US are also likely to offer another busy day to the global markets.