Asian stocks extend rally, Japan recovers Brexit-losses

The underlying favourable risk tone across Asia continues to push the Asian stocks towards 2016 highs, especially with the Japanese equities having erased all of the Brexit-induced losses, as strong US jobs report combined with fading worries over Brexit uncertainty underpins the investors’ sentiment.

Markets cheered the recent confirmation news Theresa May to take over as the UK PM this Wednesday and hence, shrugged-off lingering concerns over the Brexit fallout. While expectations of fresh round of easing across the globe also added to the bullishness in the region’s indices.

However, further upside lacks momentum amid negative oil prices and on increased nervousness ahead of the Chinese trade balance data due out shortly.

Nikkei 225 recedes gains

The Japanese benchmark index, the Nikkei 225 is seen paring gains and now trades +1.26% to 16,300, weighed down by weaker USD/JPY, down -0.37% on the day. The Australian markets trade +0.43% higher around 5,375 points.

The Chinese equities trade with modest gains ahead of the Chinese trade report, with the benchmark Shanghai Composite index up +0.10%; the CSI300 index trades +0.27%. While Hong Kong markets gain 0.44% to 21,320 points.