Asian Stock Market: Indices hold reins as S&P500 futures recover, oil bleeds, DXY juggles

• Asian equities continue making gains despite a sell-off in S&P500 on Monday.
• A contraction in GDP numbers has failed to weigh down Nikkei225.
• Chinese stocks are accelerating despite weaker Retail Sales and a resurgence in Covid-19 cases.

Markets in the Asian domain are displaying positive moves despite the sell-off in S&P500 on Monday. The 500-stock basket was expected to face turbulence as US markets opened after an extended weekend, therefore, an enhancement in volatility was highly expected.

In the Asian session, the S&P500 futures have recovered meaningfully while the US dollar index (DXY) is displaying a rangebound structure ahead of the US Retail Sales data.

At the press time, Japan’s Nikkei225 added 0.13%, ChinaA50 jumped 1.03%, Hang Seng soared 3.60% and Nifty50 eased 0.15%.

Nikkei225 is holding the reins despite reporting a contraction in Gross Domestic Product (GDP) numbers for the third quarter of CY2022. The Japanese economy has displayed a de-growth of 0.3% in the third quarter vs. expectations of expansion by 0.3% and the prior release of 0.9%. On an annualized basis, the GDP data has displayed a negative growth rate at 1.2% against an expansion of 1.1% as expected and the prior release of 3.5%.

Meanwhile, Chinese equities are enjoying significant liquidity despite the release of downbeat Retail Sales data. The economic catalyst has turned negative at 0.5%. Prolonged follow-up of Covid-19 measures, weak real estate demand, and low inflation figures are responsible for a decline in Retail Sales. Also, Industrial Production landed lower at 5.0% against the consensus of 5.2%.

On the oil front, an upthrust in Covid-19 cases in China has led to a resurgence in weaker economic projections. Therefore, the oil demand will eventually face struggles ahead. It is worth noting that the administration has eased Covid-19 measures. However, Time magazine said in a focus piece that “China just relaxed some pandemic measures, but experts suggest 'Zero-COVID’ probably won’t be going away anytime soon,”