Asian Stocks Up After Boost from Positive U.S. Data, But Headwinds Remain By

© Reuters.

By Gina Lee – Asian stocks were mostly up on Tuesday morning, buoyed by strong American economic data released overnight. But a stalemate in the U.S. Congress over the latest stimulus measures, as well as ever-increasing global COVID-19 case numbers, remain a challenge.

The reported a better-than-expected expansion, which boosted U.S. markets.

“It has been an upbeat U.S. trading session and Asia will absorb the leads accordingly,” Chris Weston, head of research at Pepperstone, said in a note.

Meanwhile, some investors were optimistic that the U.S. Congress would reach an agreement soon.

“Momentum begets more momentum, and the markets have been overbought we believe, but the demand to buy has been there,” Bob Phillips, managing principal at Spectrum Management Group, told Bloomberg.

“There’s a big desire from both parties to get some kind of stimulus passed. The way the market is reacting, I think the market is expecting that.”

U.S. House Speaker Nancy Pelosi is due to meet with Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows later in the day to continue negotiations, raising hopes for a breakthrough sometime soon.

The “only good thing we can say on the political impasse in Washington is that negotiations remain ongoing,” National Australia Bank (OTC:) said in a note.

Japan’s rose 1.34% by 11:37 PM ET (4:37 AM GMT) and South Korea’s gained 1.11%.

Down Under, the jumped 1.65%. Investors will be watching the Reserve Bank of Australia’s announcement of its policy decision later in the day, after Melbourne imposed extended and tightened lockdown measures over the weekend.

Hong Kong’s inched up 0.80%.

Meanwhile, U.S.-China tensions are also up heating up after U.S. President Donald Trump ordered Chinese company TikTok to sell its U.S. operations to a U.S. company or close them by mid-September.

China’s was up 0.09%, reversing some earlier losses. The was down 0.38%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.