Asian Stock Market: Cautious optimism fades as Indonesian shares drop over 4.0%
- Tech bounce, hopes of ECB’s upward economic forecast fail to supersede virus woes.
- Fears of no-deal Brexit, Sino-US tussle add to the market fears.
- Tokyo scales back virus-led restrictions, Japan’s Machinery Orders surged in July.
- Bi’s intervention, return of activity limits in Indonesia drag IDX Composite down by 4.88%.
Asian shares struggle to keep the initial recovery moves as the downbeat performance of Indonesian equities dash the overall scenario while others also get tensed ahead of the key ECB and Brexit talks. As a result, the MSCI’s index of Asia-Pacific shares outside Japan rises 0.50% while Japan’s Nikkei 225 adds 0.65% ahead of Thursday’s European session.
The return of social-distancing measures in Jakarta joined the Bank Indonesia’s (BI) consecutive second day of market intervention to recall the sub-5,000 area for IDX Composite.
On the other hand, Japan’s Nikkei 225 benefits from 6.3% monthly gains of Machinery Orders in July and Tokyo’s tapering of the coronavirus (COVID-19)-led lockdown restrictions. Further, stocks in China also stay upbeat amid calls of economic boost and likely positive policies to arrive from Xi Jinping and company during October month’s policy discussions. The same helped shares in New Zealand to remain 0.60% up but those from Australia seesaw around 5,880 amid political turmoil in the Pacific major.
Elsewhere, South Korea’s KOSPI adds over 1.00% as President Moon Jae-in announced the government is drafting the fourth supplementary budget of this year of 7.8 trillion won ($6.58 billion), per Reuters. It’s worth mentioning that the Indian markets are up 0.80% even as the nation’s virus cases surge the record 95,000 the previous day.
On a broader extent, the S&P 500 Futures drop 0.14% while the US 10-year Treasury yields decline 1.6 basis points (bps) to 0.687% as traders anticipate drama in London and no fireworks from the European Central Bank (ECB).