Asian stock market: Shrugs off US stimulus passage as oil keeps the red
- Asian equities fail to cheer US aid package, talks of the economic restart as oil futures continue to decline.
- US President Trump stays ready to ban immigration for 60 days, his championed drug for the coronavirus cure fails.
- South Korean President Moon calls for the third extra budget, Asia-Pacific calendar flashes mixed clues.
- Virus update, oil performance will be the key.
Wall Street’s risk-off sentiment spills into Asian stock markets ahead of the European session on Wednesday. While portraying the same, MSCI’s index of Asia-Pacific shares outside Japan drops 0.40% whereas Japan’s NIKKEI marks 1.7% losses to 18,985 by the press time.
The oil debacle refrains to stop as bears attack $10 for the WTI’s June contract amid the coronavirus carnage. US President Donald Trump’s efforts to placate traders, by announcing nearness to re-opening the US economy, as well as Senate’s $484 billion package, fail to trigger the risk-on sentiment.
The reason could be cited in the Reuters piece suggesting the drug’s inability to cure the pandemic and its side effects that have been often promoted by US President Trump. Also exerting downside pressure on the risks could be the Bloomberg Commodity Index, which dropped to the lowest since 1974.
That said, Chinese shares drop below 0.50% while those from India bear the burden of extended lockdown and rising virus fatalities. Further, South Korea’s KOSPI fails to cheer President Moon’s third call for extra budget amid fears of GDP contraction. Additionally, Australia’s ASX 200 also can’t cheer upbeat Aussie Retail Sales whereas data from New Zealand also fail to defy the NZX 50’s 0.90% decline.
It should also be noted that the US 10-year Treasury yields extend the previous declines by two basis points to 0.55% whereas futures linked to S&P 500 register mild gains amid calls of actions to tame the oil price slump.
Looking forward, investors will keep eyes on the news to control the oil plunge as well as combat the coronavirus (COVID-19) for fresh impulse.