Asian stocks: Mixed response to US NFP, trade talks amid geopolitical uncertainties

Not all the Asian stock indices reflected Friday’s upbeat US NFP and recent positive signs of the US-China trade deal on early Monday as geopolitical concerns from Libya and likely tough earnings season at the US played their roles.

Australia’s ASX and China’s Hang Seng rose 0.6% and 0.30% respectively as they took advantage of the Reuters’ report that said the Chinese government is planning to infuse more resources into the economy to encourage financing for small and medium-sized businesses. On the other hand, Japan’s Nikkei couldn’t hold its early gains backed by comments from the Bank of Japan (BOJ) Governor favoring easy monetary policy. Further, India’s headline Sensex remained almost unchanged as buyers and sellers jostle ahead of the key national election that challenges the country’s dominant ruling party.

MSCI’s broadest index of Asia-Pacific stocks ex-Japan is nearly unchanged as recent run towards risk-safety on the back of Libyan tensions dimmed equities’ prospects as market favorites.

Yields on the 10-year US government bonds dropped to 2.49% from Friday’s 2.54% level. However, they are still up from 2.35% lows marked during late-March.

At the global front, S&P marked the longest winning streak since 2017 with seven back to back positive closing; though, Dow Jones Industrial Average couldn’t please buyers much due to worries concerning results of banking giants like JPMorgan Chase & Co and Wells Fargo & Co.

While the return of Chinese delegates after successful trade talks with the US may have little more to impress global equity traders, lack of data-points may further push market players towards qualitative catalysts like geopolitical problems, Brexit, etc.