Asian Stock Market: Trades mixed as off in China, Japan tames risks from Biden-Xi call

• Asian shares pause the previous rally as trade/political challenges renew.
• Biden keeps old terms with China, Beijing warns America not to meddle in issues over Taiwan, Xinjiang and Hong Kong.
• Aussie data came in positive, Treasury Secretary praised economic recovery but off in China, Japan weighs on sentiment.

Asian equities are in stasis as off in China and Japan tames challenges to risks emanating from Biden-Xi call during early Thursday. Even so, the progress of the US stimulus talks and Fed Chair Powell’s readiness to act keeps the market mildly positive. Against this backdrop, MSCI’s index of Asia-Pacific shares outside Japan rises 0.12% near the record top marked the previous day by press time.

Australia’s ASX 200 fails to portray the impact of the upbeat Consumer Inflation Expectations and welcome comments from Treasury Secretary Kennedy as US-China tussle test sentiment.

It should also be noted that Federal Reserve Chairman Jerome Powell struck a downbeat tone during his latest appearance that highlighted concerns for US employment. The central banker showed readiness to act if needed, as always.

Amid these plays, New Zealand’s NZX 50 turned out to be the biggest loser of the region with around 1.0% downside whereas South Korea’s KOSPI and Indonesia’s IDX Composite print mild gains by press time.

Further, India’s BSE Sensex also gains 0.30% amid confusion over mild gains of S&P Futures despite negative headlines from the US.

Looking forward, the US weekly Jobless Claims and updates over the covid stimulus will be closely observed as market bulls seem tiring.

Read: Read: US Initial Jobless Claims Preview: The trend's the thing