ASIAN STOCK MARKET: TRADES MIX AS CHINA DIVES AHEAD OF PBOC, DXY SLIPS, OIL AIMS $100.00

• Asian indices are trading mixed as Chinese equities have tumbled ahead of PBOC rate decision.
• The DXY has failed to extend its recovery and may slip further on lower consensus for S&P PMI data.
• Oil prices are eying an establishment above $100.00 on renewed supply worries.

Markets in the Asian domain are displaying mixed auctions as Chinese indices have tumbled. Rising cases of Covid-19 in China have spurted the odds of lockdown. There is no denying the fact that the Chinese administration will resort to a zero Covid-19 policy to contain its spread. The resurgence of Covid-19 is recurring quickly and the economy is finding it hard to face the headwinds.

Apart from that, investors are awaiting the release of the interest rate decision by the People’s Bank of China (PBOC), which is due on Wednesday. A dovish stance is expected from PBOC policymakers as the central bank is committed to spurring economic activities in the economy.

At the press time, Japan’s Nikkei225 added 0.73%, Nifty50 gained 0.23% while Hang Seng surrendered 0.80%, and China A50 tumbled more than 1%.

The US dollar index (DXY) has witnessed a steep fall after failing to extend its pullback above 107.50 in the late Tokyo session. The DXY is expected to extend its losses after violating Monday’s low at 106.92. A slippage in expectations for a 100 basis point (bps) rate hike by the Federal Reserve (Fed) has sent the DXY into a negative trajectory. Going forward, the focus will remain on the S&P Purchase Managers Index (PMI) data, which is expected to display a weak performance.

On the oil front, oil prices are hovering around $100.00 and are focusing to recapture the same as supply worries have accelerated. The OPEC has not promised more oil supply in the visit of US President Joe Biden to Saudi Arabia. It looks like OPEC is less interested in escalating the total supply as the oil cartel is enjoying premium prices.