Asian Stock Market: Traders brace for last data dose before Christmas
- Asian shares trade mixed amid a sluggish session.
- China, White House poke bulls ahead of the key US data.
- Hopes of recovery from Omicron, optimism over US BBB reject bears.
- US Durable Goods Orders, PCE Inflation for November will decorate calendar as the last key data of the week.
Having witnessed consecutive two days of positive momentum, Asian equities track global peers during an inactive Thursday morning in Europe. That said, the MSCI’s index of Asia-Pacific shares ex-Japan gains 0.60% whereas Japan’s Nikkei 225 rises 0.55% by the press time.
Early in Asia, Reuters revealed the Bank of Japan’s (BOJ) bond issuance plan while also conveying the passage of a budget with $943 billion in spending for the fiscal year beginning in next April. On the same line were Japan’s upward revisions to GDP and dovish comments from BOJ Governor Kuroda, which all favored Japanese equity buyers.
However, China’s biggest-ever lockdown, of around 13 million residents in Xi’an as stated by the Wall Street Journal (WSJ) challenges the optimists. Additionally, doubts over the availability of Pfizer’s pill, joined by French rejection to Merck’s COVID drug, also weigh on the risk appetite.
Even so, optimism concerning US President Joe Biden's Build Back Better (BBB) stimulus plan and studies showing that infection with Omicron is significantly less likely to result in hospitalization keep the buyers hopeful.
Amid these plays, US 10-year Treasury yields seesaw around 1.457% after declining for the first time in three days on Wednesday whereas the S&P 500 Futures struggle to copy the Wall Street’s gains, up 0.05% around 4,687 by the press time. That said, the US Dollar Index (DXY) grinds lower during the four-day downtrend.
That said, stocks in Australia print mild gains but those from New Zealand are down 0.30% after the inability to trace the latest Omicron cases. On the other hand, China’s equities print mixed performance while those from Indonesia, India and South Korea post smaller losses by the press time.
Looking forward, Asia-Pacific markets may remain divided as traders approach Christmas Eve amid light volume. However, the US PCE inflation and Durable Goods Orders for November can entertain the momentum traders. Also important are the aforementioned risk catalysts.