Asian Stock Market: Bulls cheer China, Evergrande headlines

Asian equities portray a positive week-start heading into Mondays European session, thanks to headlines from China. Also contributing to the risk-on mood are the US stimulus hopes and downbeat US Treasury yields.

US policymakers, including President Joe Biden and House Speaker Nancy Pelosi, signaled nearness to the much-awaited infrastructure spending deal of late. The same joins China‘s Evergrande’s comments suggesting it has resumed construction work on 16 cites, including the latest six, to brighten the mood. Further, China‘s ability to regain the formal seat at the United Nations (UN) and the People’s Bank of Chinas (PBOC) efforts to safeguard the financial system, recently by a net 190 billion yuan injection, also underpin the positive sentiment.

On the contrary, fresh covid fears from China, as conveyed by Mi Feng, a spokesman at the National Health Commission, joins the Fed tapering chatters, underpinned by Fed Chairman Jerome Powell on Friday, challenge the mood.

Amid these plays, MSCI‘s index of Asia-Pacific shares outside Japan gains 0.20% intraday. However, Japan’s Nikkei drops 0.85% at the latest after an insurance company Meiji Yasuda Life hints at further yen strength.

Elsewhere, Australia eyes COVID-19 booster shots soon after the virus-led activity restrictions ease, per Reuters, which in turn joins recently softer Aussie virus numbers to help ASX gain 0.35% by the press time. That being said, Chinese stocks are mildly bid whereas those from Indonesia India, and South Korea follows the suit. It's worth noting that Turkish Lira refreshed record top at the week's start, following the weekend headlines, before trimming the gains to 1.35% on a day at the latest.

On a broader front, S&P 500 Futures reverse the early Asian losses to poke the record high flashed on Friday whereas the US 10-year Treasury yields drop 1.3 basis points (bps) to 1.642% at the latest. It‘s worth noting that Wall Street closed firmer the previous day even as Fed Chair Jerome Powell backed tapering and refrained from terming inflation as ’transitory.