Asian Stock Market: ASX 200 bucks the downtrend despite COVID-19, stimulus woes

• Asia-Pacific shares remain on the back foot as global markets stay disappointed over US stimulus deadlock, virus spread.
• RBA Governor Lowe assured weaker rates, Aussie/China data also favored the need for further stimulus.
• US-China tussle, Brexit woes offer additional challenges, traders stay cautious ahead of the key events.

Equities in the Asia-Pacific region stay mostly downbeat, except Australia, as global traders worry about the harsh coronavirus (COVID-19) wave 2.0 as well as no US stimulus before the American presidential election. While portraying the mood, MSCI’s index of Asia-Pacific shares outside Japan drops 0.75% with Japan’s Nikkei 225 declining over 0.50% during the pre-European session on Thursday.

Australia’s ASX 200, up 0.60% intraday, seems to bear the fruits of RBA Governor Philip Lowe’s readiness for further stimulus but New Zealand’s NZX 50 declines over 0.80% on a day to track Wall Street. Further, Chinese benchmarks were also down as headlines inflation data from the dragon nation renew economic fears whereas recent comments over US-Taiwan friendship portray chances of Sino-American jitters and weighs on the risk barometers.

Additionally, shares in Hong Kong are down over 1.0%, Hang Seng currently -1.30% to 24,332, while following clues of further geopolitical tension at home after Chinese President Xi Jinping’s push for youth to return to the mainland. It should also be noted that stocks in South Korea bear the burden of the widespread virus with 1.14% intraday losses and so does Indonesia’s IDX 50, down 0.60% now. India’s BSE Sensex takes clues from S&P 500 Futures as both as down near 0.50% amid a broad risk-off mood.

Other than the US Treasury Secretary Steve Mnuchin’s pessimistic words, COVID-19 updates from the UK and European nations also keep the risk-tone heavy. The same joins fears of no-deal Brexit ahead of today’s EU summit and drags the US 10-year Treasury yields down around 0.71%.

While the economic calendar offers fewer data in the European and the US session, updates from the Brussels and the White House will be equally important. Furthermore, the vaccine news will also offer near-term direction to the markets after the latest halt in trials weigh on the mood.