A recovery in US equities markets boosted the ASX 200 and the Nikkei on Monday. A sharp drop in 10-year US Treasury yields from a high of 5.021% on Monday increased demand for riskier assets.The Hang Seng Index, on the other hand, faced difficulties following the Monday break. Investors have an opportunity to respond to …
A recovery in US equities markets boosted the ASX 200 and the Nikkei on Monday. A sharp drop in 10-year US Treasury yields from a high of 5.021% on Monday increased demand for riskier assets.
The Hang Seng Index, on the other hand, faced difficulties following the Monday break. Investors have an opportunity to respond to the recent increase in rates and fears about the Middle East crisis.
Despite lower-than-expected private sector PMIs from Australia and Japan, Asian economic indicators had little impact on the ASX 200 and Nikkei. This can also be linked to the continuous decline in 10-year US Treasury yields.
Looking ahead, the tone for Wednesday’s session will be set by overnight US economic readings and Tuesday’s US business earnings.
The October private sector PMI report from the United States allayed fears of a US economic downturn.
On a related point, the Asian economic calendar is worth watching on Wednesday. Australian inflation numbers for the third quarter will impact market expectations about a possible RBA rate hike. Economists expect the Monthly CPI Indicator to grow from 5.2% to 5.4% in September. Persistent inflation may have an influence on investor sentiment toward ASX 200-listed stocks.
As a result, the Hang Seng Index fell 1.05% on Tuesday, while the Nikkei gained 0.20%.
Concerning the Futures Markets, the ASX 200 and Nikkei 225 gained 28 and 110 points, respectively.
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