NEWS: Asian stocks wobble amid RBA’s rate cut, doubts over trade truce/global economy
- Asian stocks remain mixed amid doubts over trade optimism, global economic health.
- Trade headlines surrounding the US and China will be the key to watch.
Asian stocks remain volatile as global traders doubt the US-China trade truce amid signs of weakness at the global economic outlook. However, RBA’s hawkish rate cut managed to please most buyers if not all.
Risk tone remains heavy as lack of updates from the US and China pushed global traders to reassess the recently agreed ceasefire amid the global leaders. Headline activity numbers from the UK, EU, and China could also be cited as a reason for market pessimism.
The US 10-year treasury yield trimmed Monday’s gains and flashes nearly 1.5 pip of loss by the press time.
MSCI’s index of Asia-Pacific shares ex-Japan added 1.4% while Japan’s Nikkie is on the run-up to 0.17% gains. Further, Hang Seng rallies 1.35% after Hong Kong markets open whereas India’s BSE Sensex drops 0.24% by the time of writing.
Australia’s ASX 200 cheers Reserve Bank of Australia’s (RBA) 0.25% rate cut with the absence of dovish statement whereas New Zealand NZX 50 follows the suit.
Moving on, comments from the Federal Reserve Bank of New York President John Williams will be closely observed to gain further clarity of the US central bank’s future policy moves.