Asian Stock Market: Grinds higher amid firmer China data, Sino-American headlines

• Asian equities trade mixed, mostly positive amid upbeat signals from China.
• Phase 1 talks aim to defuse tension between the US and Beijing.
• China Retail Sales, Industrial Production beat forecasts in October.
• BOJ’s Kuroda sounds hopeful over inflation pick-up despite downbeat Japan GDP.

Asian share edge higher amid softer US Treasury yields and hopes of an economic rebound in China during early Monday. Even so, fears of a Fed rate hike and inflation concern test bulls heading into the European session.

That said, MSCI’s index of Asia-Pacific shares outside Japan rises 0.30% whereas Japan’s Nikkei 225 prints 0.35% intraday gains by the press time.

Japan’s preliminary Q3 GDP shrank below -0.2% market forecast and +0.5% to -0.8% QoQ. Even so, Bank of Japan (BOJ) Governor Haruhiko Kuroda remains hopeful. “Bank of Japan Governor Haruhiko Kuroda expects consumer inflation to accelerate to around 1% in the first half of next year as the economy recovers to pre-coronavirus levels, voicing hope for a consumption-driven recovery,” said Reuters.

On a different page, China Retail Sales rose past 3.5% market forecast and 4.4% prior to 4.9% YoY whereas Industrial Production (IP) jumped to 3.5% versus 3.0% expected and 3.1% prior release. Additionally, the People’s Bank of China (PBOC) injected CNY1 trillion via one-year medium-term lending (MLF). Even so, stocks in China and Hong Kong remain mildly offered amid cautious mood ahead of the Sino-American phase 1 talks.

Also challenging the bulls are the mixed concerns over the US inflation and Fed rate hike following Friday’s Michigan Consumer Sentiment Index that dropped to a 10-year low.

It should be noted that the pressure on the unlocks and hopes of no major rate hikes respectively helps the markets in New Zealand and Australia despite sluggish moves in China. On the same line were Indian equities that cheers softer US Treasury yields and mildly bid stock futures.

Elsewhere, stocks in Indonesia couldn’t ignore losses in China, down 0.45% at the latest, whereas South Korea’s KOSPI cheers upbeat prints of Import-Export Price Growth.

Looking forward, chatters surrounding China's growth and Sino-American talks may entertain short-term traders ahead of Tuesday’s US Retail Sales.