Asian stocks inch up, defy US stimulus gloom | Malay Mail

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SINGAPORE, Oct 7 — Asian stock markets edged higher today, brushing off Wall Street’s weaker finish, which came after US President Donald Trump abruptly broke off economic stimulus negotiations with lawmakers. Trump cancelled talks with Democrats in a Tweet saying that negotiations will stop...

China’s stock, bond and currency markets are closed for holidays until October 9. — Reuters pic

That sent Wall Street tumbling and safe assets like the dollar and bonds higher. Investors in Asia, however, seemed less rattled, holding a view that stimulus would be delayed rather than derailed. “One way or another we’re going to get some stimulus, it’s just we’re not going to get it now — so we’ll tread water for a bit.”The end to US stimulus talks comes as a few wobbles hit the world’s coronavirus recovery.

US markets, which have rallied for a few weeks on hopes of a breakthrough in stimulus talks, tanked yesterday. The Dow fell 1.3 per cent, the S&P 500 dropped 1.4 per cent and the Nasdaq fell 1.6 per cent.The flight to safety overnight partially unwound what had been the steepest US bond market selloff in about a month. The yield on benchmark 10-year US government debt fell two basis points to 0.7403 per cent.

“We think the risks lie more in the extent of disagreement within the FOMC than on the any potential dovish surprise,” said Standard Chartered Bank’s head of FX research, Steve Englander.

 

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