Markets in Asia-Pacific were set for a mixed open on Wednesday, as investors continue to monitor coronavirus developments. Russia claimed to have developed the first vaccine in the world, while the U.S. was in a stalemate over virus aid talks.
Futures tipped a muted open for Japanese stocks on Monday, with Nikkei futures traded in Chicago at 22,745 compared to the Nikkei 225’s last close at 22,750.24
Shares in Australia were poised to drop at the open, with the SPI futures contract at 6,103, as compared to the S&P/ASX 200’s last close at 6,138.70.
Over in New Zealand, investors will be waiting for the central bank’s interest rate decision. It comes as the country increases restrictions again in Auckland as cases of local transmission were detected in the city after being virus-free for 102 days, according to Reuters.
U.S. markets swung between gains and losses overnight. Hopes of a new coronavirus relief package and optimism over Russia’s claim of developing a vaccine boosted stocks for much of the trading day. That’s despite international skepticism about whether Russia’s vaccine was effective and safe, with doubts cast on the approach on testing.
However, all three indexes, the S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite ended the day lower after virus aid talks between the White House and lawmakers stalled. Treasury Secretary Steven Mnuchin said Monday the White House is open to resuming coronavirus aid talks with Democrats and putting more relief money on the table to reach a compromise. However, Senate Majority Leader Mitch McConnell said Tuesday negotiations with Democrats were at a stalemate.
National Australia Bank’s Rodrigo Catril pegged the stalemate as the “catalyst for the big reversal in US equities in the last couple of hours of trading.”
“Now with no talks scheduled, the deadlock between Republicans and Democrats is at risk of dragging on for weeks,” Catril, a foreign exchange strategist at the bank, wrote in a morning note.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.628, swinging higher from levels above 93 seen earlier this week.
The Japanese yen traded at 106.53 per dollar, weakening from levels above 105 in the last few days. The Australian dollar changed hands at 0.7141, declining slightly.
What’s on tap (all times in HK/SIN):
- 8:30 a.m.: Australia’s Westpac consumer sentiment for August
- 10:00 a.m.: New Zealand’s interest rate decision
Source: CNBC