- Asia-Pacific equities benefit from US President Donald Trump’s health recovery, stimulus hopes.
- Australia announced fresh spending ahead of Tuesday’s budget, zero community transmission in SA, NSW and Queensland.
- China enjoys the Golden Week, light calendar keeps eyes on virus headlines from America.
Asian shares take the bids as bears step back following updates suggesting a recovery in US President Trump’s health after contracting the coronavirus (COVID-19) on Friday. The market’s mood also benefited from US House Speaker Nancy Pelosi’s hint of nearness to breaking the stimulus deadlock. Furthermore, one more push for the Brexit deal by the UK and European officials are additional reasons for the markets to remain upbeat.
While portraying the sentiment, MSCI’s index of Asia-Pacific shares outside Japan rises 0.85% whereas Japan’s Nikkei 225 rises over 1.20% to 23,310 ahead of Monday’s European session.
Australia’s ASX 200 marks the biggest daily advances in over two weeks as the Aussie government announced a A$7.5 billion boost for infrastructure spending while also stretching the debt ceiling for budget, expected tomorrow. Further to boost the Aussie players were the stage of COVID-19 in the key regions like South Australia (SA), New South Wales and Queensland where no community transmissions have been rolling out for the last few days. It’s worth mentioning that upbeat prints of Commonwealth Bank PMIs and National Australia Bank’s business sentiment data added to the Aussie bulls’ strength.
Elsewhere, New Zealand’s NZX 50 benefits from easing of lockdown restrictions by Jacinda Ardern and the company. Further, Hong Kong’s Hang Sang, Indonesia’s IDX Composite and India’s BSE Sensex are additional proofs of the market optimism while South Korea’s KOSPI adds 1.35% following upbeat PMI data for September.
Although concerns about US President Trump’s health will be the key, Tuesday’s RBA interest rate and budget release will be the key for Asia-Pacific traders amid a lack of major data/events anywhere else. It should, additionally, be noted that US ISM Services PMI and updates relating to the Brexit, American aid package will act as additional hints for market direction.
Credit: FX Street