Asian Stock Market: Nikkei leads, China lags amid sluggish S&P500 Futures, yields

• Markets in Asia-Pacific zone edge higher even as China prods bulls.
• Unimpressive prints of China Caixin Manufacturing PMI for June, fears of US-China tension weigh on sentiment.
• Nikkei 225 rises more than 1.5% to refresh one-week high as BoJ Tankan survey defends easy monetary policy.
• 10-month high FPI inflows propel Indian equities, Indonesia’s IDX Composite grinds higher on softer inflation.

Equities in the Asia-Pacific region begin the week’s trading on a firmer footing, despite witnessing hurdles from China. That said, the hopes of more stimulus and upbeat foreign investments joined recent challenges to hawkish Fed concerns while favoring the share prices early Monday. However, downbeat China data and fears of economic recovery in the Asian major prod optimism as the key week comprising the Federal Open Market Committee (FOMC) Monetary policy meeting Minutes and the US jobs report begin.

While portraying the mood, the MSCI’s index of Asia-Pacific shares ex-Japan rises 1.40% intraday whereas Japan’s Nikkei 225 leads the region’s bulls with 1.65% daily gains to around 33,735 by the press time.

It’s worth noting that better-than-forecast China Caixin Manufacturing PMI fails to impress equity buyers from Beijing amid doubts about the world’s biggest industrial player’s economic recovery. Adding to the market’s indecision are mixed feelings about US Treasury Secretary Janet Yellen’s China visit during July 06-09 period. While the news appears positive for the sentiment on the front, the details seem less impressive as US Treasury Secretary Yellen is likely to flag concerns about human rights abuses against the Uyghur Muslim minority, China's recent move to ban sales of Micron Technology memory chips, and moves by China against foreign due diligence and consulting firms, per Reuters.

With this in mind, Australia’s ASX 200 grinds higher while New Zealand’s NZX50 bears the burden of upbeat New Zealand Building Permits. Furthermore, India’s Nifty50 renews a record high amid a 10-month top inflow from Foreign Portfolio Investors (FPIs).

Elsewhere, Friday’s downbeat performance of the Fed’s favorite inflation numbers, namely the US Personal Consumption Expenditure (PCE) Price Index for May, as well as softer outcomes of the US spending survey released previously, allowed Wall Street to close on the positive side. However, the S&P500 Futures and the US Treasury bond yields struggle for clear directions of late.

Looking forward, the US ISM Manufacturing PMI and other risk catalysts for intraday directions but major attention will be given to Fed Minutes and US Nonfarm Payrolls (NFP) report for a clear guide.

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