Asian stocks follow Wall Street amid trade-positive sentiment

Increasing expectations of the US-China trade deal, backed by calls of progress from both the economies, please the Asian investors.  |  22/10/2019 06:13
  • Headlines from the US, China keep favoring odds of a trade deal around November.
  • The light economic calendar will continue pushing traders towards trade/Brexit news.

Increasing expectations of the US-China trade deal, backed by calls of progress from both the economies, give a little scope to the Asian investors to doubt their global counterparts. As a result, the MSCI’s index of Asia Pacific shares ex-Japan stays mostly positive with 0.30% gains whereas Japan’s Nikkei portrays 0.25% benefits to buyers while heading into the European session on Tuesday.

It should be noted that all the key Wall Street indices, namely SP500, DJI30 and NASDAQ closed in positive territory on Monday after trade signals from the United States (US) raised hopes of a deal with China in November, also cutting odds of December month US tariff hikes on Chinese goods.

Key equity indices in China, Hong Kong, Australia, and New Zealand keep the upbeat tone but India’s SENSEX bucks the trend as Information Technology (IT) giant said it received anonymous whistleblower complaints.

The US 10-year treasury yields stretch the previous run-up beyond 1.8% by the press time.

During early Tuesday, the Chinese representative also crossed wires and see mostly positive. However, the latest news from NIKKEI suggests the dragon nation seeks $2.4 billion sanctions on the US from the World Trade Organization (WTO).

Moving on, Canadian election results are gradually coming out with the Prime Minister (PM) Justin Trudeau’s Liberals likely to hold the powers. Though, they might have to compromise on the majority.

Elsewhere, Brexit headlines have been a few, not to mention negative, but fail to defy market sentiment supporting the PM’s deal.

While Bank of Canada’s Business Outlook Survey, Canadian Retail Sales and second-tier data from the US are the only ones to decorate the economic calendar, investors will keep an eye over the trade/Brexit headlines for fresh impulse.

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