Mumbai: Indian stock markets are likely to be volatile due to the expiry of the September series of futures and options contract on Thursday.
Asian stocks edged up on Thursday as hopes the US and China may soon end their year-long trade war boosted demand for riskier assets, and as worries about a US presidential impeachment bid ebbed.
MSCI's broadest index of Asia-Pacific shares were firm. Japan's Nikkei rose 0.45%. Australian shares were up 0.13%.
Renewed optimism over trade pushed market concerns about US political risks into the background. Democrat lawmakers had said they will open an impeachment inquiry into President Donald Trump’s dealings with his Ukraine counterpart. Earlier political worries eased as investors largely shrugged off Democrats’ decision to begin an impeachment inquiry into Trump. That came even as a summary of a telephone call showed the US president asked Ukraine’s president to investigate a political rival.
Lifting investor mood, Trump said a deal to end a nearly 15-month trade war with China could happen sooner than people think, and would remove a huge risk to the global economic outlook.
US stock futures were down 0.08% in early Asian trade, following a 0.62% increase in the S&P 500 on Wednesday.
Trump on Wednesday also announced initial details of a trade deal with Japan, which would open up Japanese markets to $7 billion worth of US products. Despite the progress in Japan trade, Sino-US talks remain the bigger concern for global investors.
The US and China have been locked in a year-long dispute over Beijing’s trade practice that has slowed global growth and increased the risk of recession for some economies. On Tuesday, Trump sharply criticised China in a speech at the United Nations General Assembly, where he said he would not accept a “bad deal".
Back home, Prime Minister Narendra Modi promised to further simplify India’s tax regime, including bringing tax on equity investments in line with global standards, making a strong pitch to global business leaders to invest in India.
Shares of Indiabulls Real Estate Ltd (IBREL) will be in focus. The company has sold its remaining stake in commercial office assets in Gurugram and central Mumbai to Blackstone Group LP for an aggregate equity value of around ₹2717 crore, the developer told the stock exchange late on Wednesday.
Meanwhile, the Reserve Bank of India (RBI) is examining all large loans made by Punjab and Maharashtra Cooperative Bank (PMC), including to troubled real estate group Housing Development Infrastructure Ltd (HDIL), according to a Mint report.
Shares of Mahindra and Mahindra will be eyed. Ford Motor Co is set to transfer most of its assets in India to a joint venture with Mahindra & Mahindra Ltd, according to reports.
Oil futures rose in Asia in a sign of cautious optimism about global economic prospects, but some investors warned that an end to trade friction is far from certain. US crude ticked up 0.27% to $56.64 a barrel, while Brent crude rose to $62.54 per barrel in a sign some investors anticipate higher demand for energy and fuel in the future due to stronger economic activity.
Treasury yields gave up some of their gains in Asia after rising in overnight trade. The yield on benchmark 10-year Treasury notes fell slightly to 1.7146%. The two-year yield fell to 1.6635%.
Reuters contributed to the story