ASIA-PAC MARKET WRAP: Asia stocks mostly traded with cautious gains as global markets brace for this week's mega-risk events and with the region digesting strong China PMIs

Analysis details (05:52)

Asian equity markets traded with cautious gains and US stock index futures were choppy amid tentativeness moving into a risk-packed week with the US election, major central bank meetings & NFP data all scheduled, while participants also digested new lockdown announcements and stronger than expected Chinese PMI data. ASX 200 (+0.4%) was kept afloat amid expectations of further policy easing by the RBA at tomorrow’s meeting but with gains capped by oil sector losses and indecision in financials, as a continued surge in AMP shares after it confirmed the value of the Ares proposal, was partially counterbalanced by losses in Westpac due to a 62% decline in full-year profit. Nikkei 225 (+1.4%) was underpinned as focus centred on earnings and with the index benefitting from the tailwinds provided by the constructive Chinese data. Elsewhere, Hang Seng (+1.1%) and Shanghai Comp. (+0.1%) were varied after the recent blue-chip earnings including mostly weaker results from China’s big 4 banks although the PMI data was more encouraging in which the official Manufacturing and Non-Manufacturing PMI data topped estimates, while Chinese Caixin Manufacturing PMI also exceeded expectations to print its highest since January 2011. Finally, 10yr JGBs were steady to provide some reprieve from Friday’s selling pressure and breakdown of the 152.00 support level, but with the rebound limited by the tentative gains in stocks and somewhat inconclusive purchase intentions by the BoJ for November in which it raised the amounts of 1yr-3yr and 3yr-5yr purchases but also reduced the frequency of those purchases to 5 from 6 occasions during the month.

02 Nov 2020 - 05:49- Important- Source: Newsquawk