RBA’s surprise inaction, Japanese officials’ defense of BoJ’s ultra lose monetary policy favor equity bulls.S&P500 Futures trace Wall Street’s gains, yields grind lower ahead of US ISM Manufacturing PMI, JOLTS Job Openings.remains mildly positive in Asia as traders cheer hopes of witnessing no more interest rate hikes from the top-tier central banks amid early Tuesday.
While portraying the mood, MSCI’s index of the Asia-Pacific shares outside Japan rises to the highest level since February, printing mild gains of late, whereas Japan’s Nikkei jumps 0.75% intraday to prod the early July peak at the latest. It’s worth noting that a softer Japanese Unemployment Rate and comments from policymakers defending the easy-money practices favor the nation’s equity benchmark.
Further, Australia’s ASX 200 also jumps around 0.70% on a day as the Reserve Bank of Australia keeps the benchmark interest rates unchanged for the second consecutive week. Additionally, fresh fears of the US-China tussle, as Beijing restricts drone exports in retaliation to the US tech and trade war tactics by citing the “national security” measures, prod the optimists. Also weighing on the sentiment could be the downbeat China PMI as Caixin Manufacturing PMI for July fails to trace its upbeat NBS counterpart while declining to 49.2 for July from 50.5 prior, versus 50.3 market forecasts, marking the lowest level since January.
Elsewhere, S&P500 Futures seesaw near the yearly high, up 0.15% intraday near 4,610 at the latest, while the US 10-year and two-year Treasury bond yields edge lower after declining in the last two consecutive days.