- Asia-Pacific shares trade mixed with China and New Zealand equities flashing red signs.
- Concerns over Evergrande, Sino-American ties and economic conditions test Beijing-based companies despite government efforts.
- Moody’s sound optimistic over the bloc’s economic growth, APEC leaders agree over challenges of the pandemic, climate change.
- US Treasury yields, DXY grind higher amid light calendar, UoM Consumer Sentiment eyed.
Stock traders in the Asia-Pacific bloc struggle to cheer the mildly bid sentiment as China and New Zealand stop the bulls while the US Treasury yields remain mostly steady during early Friday.
That being said, MSCI’s index of Asia-Pacific shares outside Japan rises 0.40% whereas Japan’s Nikkei 225 posts 1.05% daily gains by press time. On the other hand, China A50 and New Zealand’s NZX 50 print losses around 0.60% at the latest.
Although Goldman predicts a boost for Chinese stocks due to the softer regulation, per Bloomberg, an absence of encouragement over the Evergrande issues, despite the firm’s third rejection to default, challenges Beijing-based equities. On the same line were chatters surrounding the Sino-American ties ahead of the next week’s virtual summit between US President Biden and his Chinese counterpart Xi. The reason could be linked to Communist Party officials’ signing off on the first historical resolution in 40 years to keep President Xi in the driver’s seat.
Elsewhere, firmer prints of NZ Business PMI for October, 54.3 versus 51.4 seem to have renewed RBNZ rate-hike chatters and weigh on the Kiwi stocks.
Additionally, Reuters reported that Asia-Pacific Economic Cooperation (APEC) leaders agreed in the forum the challenges of the pandemic and climate change were similar since they were both exponential processes, the severity of which was hard to recognize at the start of a growth curve.
Alternatively, global rating giant Moody’s latest assessment of the Asia-Pacific economies mentioned, “Most will rebound, helping to support debt stabilization at higher levels than pre-pandemic.”
It’s worth noting that the US Treasury markets reopen after a holiday and helped the US Dollar Index (DXY) to refresh the 16-month peak before trading sideways while waiting for the US Michigan Consumer Sentiment for November, expected 72.4 versus 71.7 prior.
Read: US Treasury yields fade biggest jump in seven weeks, S&P 500 Futures stay mildly bid
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