3 May 2016
Asian stocks rebound ahead of RBA, Japan off until Friday
The stocks on the Asian bourses staged a tepid-bounce this Tuesday, ending a four-day losing streak, largely on expectations of a rate cut by the RBA at its policy decision today. However, with the Japanese markets closed until Friday, thin volumes and limited volatility are likely to persist across Asia.
Meanwhile, the Asian indices ignored the weak China Caixin PMI print and track the Wall Street higher amid oil price recovery. The US stocks rose on Monday, rebounding from losses last week, on upbeat corporate earnings report and broad based US dollar weakness.
RBA cash rate decision – In spotlight
The Australian stocks are seen extending the rebound, with the benchmark ASX 200 index now consolidating gains below 5,300 mark heading into the RBA policy decision. The RBA cash rate decision is expected to be a coin toss, with markets pricing-in a 53% chance of a 25 bps rate cut today.
While the Chinese equities jump higher, despite below estimates Chinese Caixin manufacturing PMI report. China Caixin manufacturing PMI for April disappointed markets, coming in at 49.4, declining from 49.7 posted in March and missing expectations of a 49.8 reading, which signals further deterioration in the country’s manufacturing sector.
Among the Chinese indices, the benchmark Shanghai Composite index climbs +1.25%, the CSI300 index bounces +1.45%, while Kong’s Hang Seng bucks the trend and drops -1.22%.
Meanwhile, the Asian indices ignored the weak China Caixin PMI print and track the Wall Street higher amid oil price recovery. The US stocks rose on Monday, rebounding from losses last week, on upbeat corporate earnings report and broad based US dollar weakness.
RBA cash rate decision – In spotlight
The Australian stocks are seen extending the rebound, with the benchmark ASX 200 index now consolidating gains below 5,300 mark heading into the RBA policy decision. The RBA cash rate decision is expected to be a coin toss, with markets pricing-in a 53% chance of a 25 bps rate cut today.
While the Chinese equities jump higher, despite below estimates Chinese Caixin manufacturing PMI report. China Caixin manufacturing PMI for April disappointed markets, coming in at 49.4, declining from 49.7 posted in March and missing expectations of a 49.8 reading, which signals further deterioration in the country’s manufacturing sector.
Among the Chinese indices, the benchmark Shanghai Composite index climbs +1.25%, the CSI300 index bounces +1.45%, while Kong’s Hang Seng bucks the trend and drops -1.22%.