Asian stock market: ASX 200 turns positive as Chinese equities rally 3%

• Asian shares track surge in Chinese blue-chips amid hopes of further stimulus.
• Upbeat Aussie data add strength to the market’s optimism.
• Coronavirus woes, US-China tussle continue to guard the optimism.

Asian equities print welcome start to the week while taking the bids during the early Monday. The risk barometer mainly took clues from Chinese stocks that rallies over 3.0%. While fears of the coronavirus (COVID-19) and the US-China tussle remains on the cards, the anticipation of further cheap money becomes the key push behind the recent optimism.

Other than A-list shares from Beijing, the MSCI index of Asia-Pacific shares outside Japan also portrays the risk-on mood with a 1.17% rise as we write. Further, Japan’s Nikkei 225 adds near 1.5% to 22,613 whereas Australia’s ASX 200 reverses the early-day losses with 0.11% gains by the press time. It’s worth mentioning that New Zealand’s NZX 50 gains 0.58% despite the downbeat ANZ Commodity Price Index.

Looking forward, Hong Kong’s Hang Seng benefits from upbeat Markit PMI for June, 49.6 versus 43.9, to be over 2.0% in green around 25,940. Additionally, South Korea’s KOSPI and Indonesia’s IDX Composite also rose, though with a lesser strength amid increasing pandemic worries at home.

Other than the Asia-Pacific shares, the US 10-year Treasury yields also portray the upbeat trading sentiment by adding two basis points (bps) to 0.691%. Furthermore, S&P 500 Futures rise 0.80% to cross 3,150 ahead of the US traders’ reason.

In addition to hopes of further stimulus, markets might be preparing for the US traders’ return as they got a little time on Thursday to cheer upbeat June employment data. Though, ISM Non-Manufacturing PMI, expected 49.5 versus 45.4, will be the key in determining the same and take near-term trade decisions.