- Asian equities print mild gains amid hopes of further stimulus, receding reflation fears.
- RBNZ’s Orr keeps hammering NZX 50, covid woes in Asia-Pacific gains a little attention.
- US PCE data, budget eyed for fresh impulse.
Asian shares remain mildly bid despite cautious sentiment ahead of the key US data/events test the bulls heading into Friday’s European session. Market sentiment improved following US President Joe Biden’s push for more stimulus, around $6.0 trillion, in a budget to be announced today. Also pleasing the bulls were comments from US Treasury Secretary Janet Yellen who joined old pals at the Federal Reserve (Fed) to reject inflation risks.
Amid these plays, MSCI’s index of Asia-Pacific shares outside Japan prints 0.60% intraday gains while refreshing the monthly high. On the other hand, Japan’s Nikkei 225 also cheers hopes of further stimulus from the local government, ignoring likely extension to the virus-led emergencies, to jump over 2.0% by the press time. It’s worth mentioning that Japan’s inflation figures and Unemployment Rate gained little response from the markets due to mixed outcomes.
Chinese markets could battle the government’s commodity crackdown and so do Australia’s ASX 200 even as Victoria’s snap lockdown challenges the market optimism. Furthermore, South Korea’s KOSPI, Indonesia’s IDX Composite and India’s BSE Sensex are on the same line during the quiet session in Asia.
Alternatively, New Zealand’s NZX 50 bucks the uptrend as the Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr backs the rate hike speculations.
Elsewhere, S&P 500 Futures print mild gains but the firmer US 10-year Treasury yields limit the upbeat sentiment. Also, cautious mood ahead of US Personal Consumption Expenditure (PCE) Price Index for April and budget announcement adds a filter to the market’s optimism.
Read: US PCE inflation preview: Gold remains key asset to watch
Looking forward, investors should remain cautious as US catalysts are likely to offer volatile a trading day ahead of the long weekend.
