Asian Stock Market: Trades mixed as yields rebound, New Zealand leads bears on RBNZ
|- Asian equities struggle between gains and losses with Taiwan and New Zealand occupying the extreme ends.
- Shares in New Zealand slump after RBNZ’s rate hikes, Taiwan stays hopeful of the US help against China.
- Snap drowned Nasdaq but Dow Jones bucked the trend, S&P 500 Futures print mild gains.
- FOMC Minutes, US Durable Goods Orders eyed for fresh impulse.
Markets in the Asia-Pacific bloc tracked Wall Street’s pattern during early Wednesday as lackluster yields and mildly bid stock futures await the key data/events from the US. While portraying the mood, the MSCI’s index of the Asia-Pacific shares ex-Japan rises half a percent but Japan’s Nikkei 225 struggles for clear directions.
New Zealand’s NZX 50 was a big loser, with around a 1.0% daily fall, as the Reserve Bank of New Zealand (RBNZ) announced 50 basis points (bps) rate hike. On the contrary, shares in Taiwan gained the most, up nearly 1.05% at the latest, as the US readiness to help the Asian nation counter China’s pressure renewed investor optimism despite Beijing's readiness for a military drill near Taiwan.
Elsewhere, Australia’s ASX 200 adds 0.70% even as RBA Assistant Governor (Economic) Luci Ellis signaled more rate hikes. Furthermore, Japan’s government maintains its economic assessment in May but fears of growth and North Korea’s missile launches seem to have weighed on the Nikkei 225.
It’s worth noting that covid fears and the resulted economic pessimism for China challenge stocks in Beijing whereas India’s BSE Sensex remains directionless during the first negative year in six.
On a broader front, the US 10-year Treasury yields bounce off the monthly low while rising 0.8 basis points (bps) to 2.767% whereas the S&P 500 Futures add 0.60% on a day by the press time. On Tuesday, Wall Street closed mixed as downbeat US housing data and fears of Snap’s losses drowned Nasdaq.
Looking forward, the US Durable Goods Orders for April, expected 0.6% versus 1.1% prior, as well as the Federal Open Market Committee (FOMC) Minutes, will join the speech from ECB President Christine Lagarde to direct immediate moves.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.