Asian stocks register modest gains as trade optimism confront geopolitical/growth fears

• Trade-positive headlines concerning the US-China and US-Japan ties renew risk-on sentiment.
• Fears of the global slowdown, geopolitical uncertainty keep gains in check.
• Political news, central bankers’ comments will be in the spotlight.

Although trade positive sentiment welcomes Japanese trades after an extended holiday, Asian stocks couldn’t rise much as traders weigh geopolitical challenges emanating from the Middle East, UK and North Korea. Also questing the equity bulls are recently mixed headlines from the Eurozone and China.

While early-day statements erasing latest US-China trade pessimism initially pleased market players, updates from the United Nations General Assembly (UNGA) also flashed welcome signals for the US-Japan trade ties.

However, Iran’s refrain to come back to the Nuclear Deal and no breakthrough Brexit decision from the EU-UK leaders’ meeting question market optimism. Investors were also taken back by mixed comments from China’s central bank Governor after the European Central Bank (ECB) President spread global growth worries during the previous day.

With this, MSCI’s Index of Asia Pacific shares ex-Japan flashes modest gains while no major recovery could be spotted in the US 10-year Treasury yields. Further, Japan’s NIKKEI also followed the suit with 0.20% gains whereas China’s HANG SENG adds 0.30% to yesterday’s close by the press time.

Moving on, expectations that the recent stimulus will help the Indian economy to reverse earlier slowdown failed to support the BSE SENSEX, which is down -0.20%, while Australia’s ASX 200 and New Zealand’s NZX50 stay mostly unchanged ahead of the speech from the Reserve Bank of Australia’s (RBA) Governor, at 09:55 GMT, and Wednesday’s monetary policy meeting by the Reserve Bank of New Zealand (RBNZ).

Not only events concerning the RBA and RBNZ, but speech from the ECB’s Vice President Luis De Guindos will also decorate central-bank watchers’ list. Further, the UK Supreme Court will decide whether the United Kingdom’s (UK) Prime Minister (PM) acted unlawfully while recently proroguing the parliament or not. On the economic calendar, German IFO numbers and the US details concerning Consumer Confidence, housing and manufacturing activity will be closely observed.