Asian stocks: On the front foot as trade optimism favors risk-on

• Asian traders cheer increasing odds of the US-China trade deal.
• Statements from RBA, BOJ Governor add to the rush towards equities.

While comments from US President Donald Trump and his Chinese counterpart Xi Jinping initially boosted expectations of a successful “Phase One” deal between the US and China, latest upbeat tone of the US Trade Secretary Wilbur Ross increases the market’s optimism. Also adding to the equities’ strength is bearish bias of the Reserve Bank of Australia (RBA) and Bank of Japan (BOJ).

With this, MSCI’s index of Asia Pacific shares outside Japan marks 0.5% gains while Japan’s NIKKEI enjoys the return of traders from holidays with a big leap to 1.80% positive territory. Further, Australia’s ASX 200 manages to gain 10 points while NZX 50 is 0.30% positive as the US Dollar (USD) strength keeps commodity gains in check.

Further, Chinese equities near 1.0% gains while India’s BSE Sensex remains mostly unchanged and Indonesia’s IDX Composite cheers better than forecast prints of Indonesian Gross Domestic Product (GDP) figures for third quarter (Q3) 2019. Additionally, the Philippines’ PSEi Composite rises over 1.0% after downbeat inflation figures raise hopes of further monetary easing.

Elsewhere, the US Dollar Index (DXY) surges to four-day high while the 10-year Treasury yields of the United States (US) bonds rise to 1.8% while adding to the overnight gains of 6 basis points.

In addition to trade headlines, Purchasing Managers Index (PMI) data from the United Kingdom (UK) and the US will keep markets entertained.