Asian Stock Market: Trades higher, China equities lead gains

• Asian stock markets trade in positive territory on Tuesday.
• The Chinese additional stimulus measure alleviates some fear of the economic slowdown in China.
• Investors await US top-tier economic data, Chinese Manufacturing PMI.

Asian stock market gains momentum on Tuesday as the concern over the economic slowdown in China fades while investors await the economic data from the US, including the highly anticipated Nonfarm Payrolls on Friday. 

At press time, China’s Shanghai is up 1.39% to 3,141, the Shenzhen Component Index surges 2.41% to 10,480, Hong Kong’s Hang Sang rises 2.02% to 18,496, South Korea’s Kospi is up 0.40%, Japan’s Nikkei is up 0.33% and Nifty 50 rises 0.16%.

The Chinese finance ministry said that the authorities would reduce the 0.1% duty on stock trading to stimulate the capital market and strengthen investor confidence. As part of government attempts to stimulate a stock market fighting for liftoff in a faltering economy, China's securities regulator authorized the launch of 37 retail funds over the weekend, according to Reuters. This positive development alleviates some fear of the economic slowdown in China, the world’s second-largest economy. However, market players will closely watch the Chinese Manufacturing PMI for August on Friday for fresh impetus.

In Japan, the nation’s unemployment rate increased to 2.7% in July from 2.5% in June, according to the latest figures from the Statistics Bureau. The figure rose for the first time in four months and exerted pressure on the Bank of Japan (BoJ) and the government. Furthermore, Japanese Finance Minister Shunichi Suzuki said on Tuesday that the policymaker will look into economic measures to be implemented after September while he said that he does not want to remark on the additional budget at this time.

In India, the Adani group was found to have violated rules on disclosures by listed businesses and limits on offshore fund holdings following the investigation by India's market regulator. On the Indian docket, the Gross Domestic Product (GDP) and S&P Global Manufacturing PMI August will be due later this week.

The attention will shift to the US economic data. The US JOLTs Job Openings figures from July, ADP Employment Change, and Nonfarm Payrolls will be due later this week. Also, the US Gross Domestic Product (GDP), ISM PMI, and Core Personal Consumption Expenditures (PCE) will be in the traders’ focus.