Asian markets swing as focus turns to US jobs data

Asian markets swing as focus turns to US jobs data

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Hong Kong: After another healthy month for global stock markets, Asian markets were volatile on Tuesday, which was attributed to expectations of cheap borrowing in the coming years. At the same time, traders turned their attention to the US employment data released later this week.

The Nasdaq Index set a new record. Technology companies were fired because people were forced to stay home due to the virus, but the Dow Jones and S&P 500 indexes fell, even though they both experienced the best eight in more than 30 years. month.

Signs of a new increase in global infections and signs of a lack of momentum in the new US stimulus plan for the world’s top economies also depressed buying sentiment.

Tracie McMillion of the Wells Fargo Investment Research Institute told Bloomberg TV: “Since we saw the trough in March, after such a strong month and such a strong recovery, we did I think there may be some turbulence in the coming months.”

“We are entering a period of seasonal weakness, elections are about to be held, and we are also entering the autumn, the coronavirus may escalate, which may also worry market participants.”

Hong Kong and Shanghai both fell 0.2%, Sydney fell 1.8%, while Singapore and Wellington also posted losses.

Tokyo closed flat, although Seoul and Manila gained 0.8%, Jakarta and Taipei were also in positive territory.

The key event of the week is the release of the closely watched U.S. non-agricultural employment data on Friday, which will provide the latest snapshot of the economy that has been struggling in recent weeks due to some containment measures due to new outbreaks in various regions. country. The latest news of the factory and service industry will also be announced this week.

Nevertheless, this weakness did not give American legislators any urgency to push for a new bailout agreement, and Republicans and Democrats are still in opposition.

Treasury Secretary Steven Mnuchin said that Republicans will soon announce a new “Child and Work Expenditure Act” that may cost about $1 trillion, less than half of what Democrats provide.

He said that the Democratic leaders in the House of Representatives and the Senate “just don’t want to negotiate in good faith.” The senators adjourned until September 8, and there was little chance of reaching any agreement soon.

Stephen Innes of AxiCorp said: “The ambivalence not only harms the nascent economic recovery, but more importantly, it keeps the people who need it most regularly checking their mailboxes, while praying for the miraculous appearance of the first Secondary stimulation check.”

“We’re talking about people who need to buy groceries here, not luxury goods. Now is the time for Congress to get out of trouble and put together what is feasible.”

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