Asian Stock Market: Trades lower amid risk-off mood
- Asian stock indices edge lower on Monday.
- Softer US dollar minimizes losses in riskier assets.
- China reports smaller gains in Trade data.
Asia-pacific shares trade mixed on Monday, following Wall Street’s negative price action on Friday. The market fails to capitalise on the submissive US Job reports, which cooled down the inflation anxiety among investors.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down by 0.3%. Japan’s Nikkei gained 0.3% and touched its highest level in a month.
HongKong’s Hangseng lost 0.81%, Kospi gained 0.19%, Australia’s S&P ASX 200 lost 0.26%.
China’s Shanghai Composite edged down 0.21% post disappointing trade data, which showed China’s trade surplus came smaller at USD 45.53 billion, against the market expectations of USD 50.5 billion.
Meanwhile, a draft of the economic and fiscal blueprint obtained by Reuters showed that the Japanese government will pledge to take steps “ without hesitation” to prevent the economy from slipping back into deflation. This reflects the problem in Japan's economic condition.
As of writing USD/JPY is trading at 109.59%, up 0.09% for the day.
US Treasury Secretary Jenet Yellen commented on being comfortable with rising inflation and interest rates if that means economic growth provided some lower ground for the US dollar. The US dollar came under selling pressure on Friday after softer than expected US job data eases the fear of inflation and sooner Fed tapering.
Gold was trading at $1,889 with 0.12% losses for the day.