Asian stocks cheer upbeat data-flow, trade deal optimism

While positive sentiment surrounding the US-China trade deal offered an upbeat start to the week, welcome prints of the US and Chinese manufacturing data pleased the Asian traders during early Tuesday.

Asian stocks followed Wall Street gains as MSCI’s broadest index of Asia-Pacific shares ex-Japan carried previous gains forward towards seven-month high.

Japan’s Nikkei was +0.3% whereas Australian stocks were up nearly half a percent when the Shanghai composite index was 0.1% in gain. Moreover, Hong Kong’s Hang Seng and Seoul’s Kospi were also up around 0.2% by the press time.

In the case of the US stocks, S&P 500, Nasdaq composite and Dow Jones Industrial Average all added more than 1.0% on Monday.

The US 10-year Treasury yield recovered on Monday to 2.5% from 2.41% but is presently witnessing pullback to 2.48%.

With the recovery in manufacturing indices calling the stock Bulls back, today’s durable goods order from the US could gain market attention for near-term direction. Risk events like Brexit, the US-China trade negotiations could also play their roles in directing immediate market moves.