Asian stocks follow Wall Street amid China’s absence, RBA’s rate cut

• Traders in Asia cheered the Wall Street gains, RBA’s rate decision amid a lack of trade headlines, China’s absence.
• The economic calendar has been flashing mixed signals since early-day.
• Month-start PMIs are back in the focus.

Following a slew of mixed trade headlines and a positive closing by global equity benchmarks, Asian shares ignore China’s week-long holidays while also cheering a rate cut from the RBA.

DJIA, S&P500, and NASDAQ all managed to close the September month on a positive note while expecting an upbeat start of the US-China trade talks, mostly during October 10-11. The underlying sentiment benefited from China’s activity data while month-end momentum shrugged off market fears of US President Donald Trump’s impeachment.

Earlier on Tuesday, Indonesia inflation data followed Australia’s housing market and activity statistics, not to forget Japan’s manufacturing details and unemployment rate. While there was a lack of noticeable change in major readings, a 0.25% rate cut from the Reserve Bank of Australia (RBA) recently grabbed the headlines.

With this, MSCI’s index of Asian Pacific shares outside Japan flashes more than 0.2% gain while Japan’s NIKKEI offers 0.70% profits around 21,900 mark. Further, Australia’s ASX 200 remains 0.30% on the positive side while New Zealand’s NZX 50 rises close to 0.70% by the press time. Additionally, India’s BSE SENSEX stays mostly unchanged around 38,700.

Risk tone has been upbeat with the US 10-year treasury yields flashing nearly two basis points of gains to 1.70%.

Although trade/political headlines are likely to entertain momentum traders, month-start purchasing managers’ index (PMI) numbers from the Eurozone, the UK, and the US will also play their roles while going forward.