Asian Stock Market: Tumbles on sluggish market mood, DXY rebounds, oil defends $90.00

• The risk-off market tone has brought a sell-off in Asian indices.
• US markets will remain closed on account of Columbus Day.
• Escalating Japan-North Korea tensions may buzz longer on North Korean Kim’s suspicious comments.

Markets in the Asian domain are displaying a weak performance following the footprints of weaker S&P500 recorded in Friday. Also, the latter index futures have continued its sluggish performance on Monday. Firmer US Nonfarm Payrolls (NFP) data and geopolitical tensions between Japan and North Korea have strengthened the negative market sentiment, which has forced the market participants to bank on sell-off.

At the press time, Japan’s Nikkei225 dropped 0.71%, ChinaA50 tumbled 1.10% and Hang Seng nosedived 2.44%.

Escalating Japan-North Korea tensions amid the recurring firing of ballistic missiles by Kim Jong-un region around Pyongyang without prior notice of any equipment has strengthened the case of demolishing harmony in Japan. Including two missile launches on Sunday, counting has increased to seven. Adding to that, the suspicious commentary from the North Korean leader has also intensified the risk of escalating tensions further.

North Korean leading Kim stated that their administration need not have a dialogue with the economy and the former will continue to strengthen its nuclear operations ahead, as reported by Reuters.

Meanwhile, Chinese equities are facing a sell-off after the conclusion of the Golden Week Holiday. A long week holiday is responsible for the suspension of economic activities, which will display its impact in the coming weeks. A major impact will be seen on Chinese Manufacturing PMI data, which is been discounting by investors.

The US dollar index (DXY) is struggling to cross the immediate hurdle of 112.80 and broadly displaying a sideways movement as less activity is expected from the US markets due to the extended weekend.

On the oil front, oil prices have corrected to near $90.70 after facing barricades at around $92.00. The impact of mega production cuts by OPEC+ has pushed the oil process into a bullish trajectory. Going forward, bets over the extent of the rate hike by the Federal Reserve (Fed) will decide the direction of the oil prices as a higher rate hike by the Fed will trim the overall demand, and henceforth the demand for oil.