Asian Stock Market: Preserve tepid performance amid risk-off mood

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  • Asian stocks trade mostly mixed on Wednesday following discouraging cues from Wall Street.
  • Japan’s Nikkei led the gains after GDP data shows the economy expanded more than estimated.
  • Risk aversion on rising concerns of the rapid spread of the Delta covid variant kept investors unnerved.

Stocks trade on a mixed note in Asia on Wednesday following a lacklustre performance on Wall Street in the overnight session.

Investors remained cautious as they returned from the Labour Day holiday in the US session. The risk-averse mood weighed on market sentiment as coronavirus jitters continued to shake traders faith.

MSCI’s broadest index of Asia-pacific shares outside Japan declined 0.3%.    

Japan’s Nikkei 225 gained 0.82% near to six-month highs at 30,162 while rising for the eight-session consecutively. The sentiment was boosted after upwardly revised Japan’s Q2 Gross Domestic Product (GDP) data confirmed the nation is still not in recession. The economy grew 0.5% in Q2 as compared to 0.3% market expectations.

The Shanghai Composite Index gained 0.3%, hovering around a seven-month high after People’s Bank of China (PBOC) Vice Governor Pan Gongsheng confirmed that China will maintain a prudent monetary policy.

Hong Kong’s Hang Seng Index climbed 0.07%, South  Korea’s Kospi traded down 0.03%.

The ASX 200 lost 0.2% after New South Wales (NSW) reported fresh 1,480 new coronavirus cases, up from 1,220 a day earlier. Further Reserve Bank of Australia (RBA) warned in its September monetary policy meeting that country’s GDP is expected to fall in Q3.

The US Dollar Index (DXY) stands strong above 92.50 with 0.05% gains.