Asian stocks: Mildly positive following Japan’s return from holidays

• Asian equities benefit from receding coronavirus-led pessimism, expectations of no major policy easing check the bulls.
• Fed Chair Powell’s second reading of testimony will be in the spotlight light.

Shares in Asia register modest gains with MSCI’s gauge of Asia-Pacific shares (ex-Japan) +0.85% while heading into the European session on Wednesday.

Japanese traders cheer the receding cases of coronavirus and cautious optimism spread by the central bankers with benchmark NIKKEI being +0.50% to 23,803 by the press time.

However, sustained support for the current monetary policies by the heads of Fed, BOE and the ECB, followed by the RBNZ’s hawkish halt, cap gains of the Asian equities.

Australia’s ASX 200 gained 0.47% to 7,088 while New Zealand’s NZX 50 follow the suit after RBNZ turned down calls for further rate cuts.

Markets in India and China were positive but those of Indonesia and Malaysia stepped back amid softening of the domestic fundamentals.

That said, the US 10-year treasury yields rise three basis points to 1.618% by the time of writing whereas Wall Street benchmark extended their run-up to record highs by the end of Tuesday’s trading session.

Traders will now concentrate on the Fed Chair Jerome Powell’s second day of testimony and updates from China for fresh clues.

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