Asian Stock Market: China, Japan struggle to please bulls amid sluggish session

• Asian equities fail to track Wall Street amid mixed plays.
• Rishi Sunak’s victory in the UK PM race, softer PMIs allowed equity buyers to remain hopeful.
• Alleged meddling by Chinese officials to propel equities, BOJ’s “stealth intervention” fail to entertain traders.
• Yields remain pressured despite softer PMIs challenge hawkish central banks.

Asia-Pacific equities seesaw around a 2.5-year low as fears emanating from China and Japan flash mixed signals to defend the stocks during early Tuesday.

That said, a sharp jump in Chinese shares triggered fears of market intervention from Beijing, which in turn allowed traders to pare some looses. However, an absence of confirmation allowed equity bulls to pare some gains. Elsewhere, Japan’s stealth intervention also supported the Asia-Pacific equities.

While portraying the mood, MSCI’s index of Asia-Pacific shares outside Japan drops 4.5% intraday to a 2.5-year low. However, Japan’s Nikkei 225 rises 1.2% while Chinese equities are on an average 1.0% up on a day.

Amid these plays, Reuters stated that the Asian benchmark is nursing losses of nearly 32% so far this year, weighed by big falls in Hong Kong shares while emerging markets such as India and Indonesia have gained on improving growth prospects.

Elsewhere, the US Dollar Index (DXY) remains on the back foot around 111.85, taking rounds to intraday low while struggling to extend the week-start gains amid the mixed clues in the market and the downbeat US data, as well as an absence of Fedspeak. It should be noted that the US 10-year Treasury yields remain pressured around 4.21%, down two basis points (bps) while the US stock futures remain mildly offered. Also, stocks in the Asia-Pacific region are mostly negative led by China.

Moving on, a light calendar could test equity traders amid an absence of the Fed speakers. Though, looming risks to the major economies and likely central bank aggression favors the gold sellers ahead of Thursday’s US Gross Domestic Product for the third quarter (Q3).