Asian Markets tick Higher as Tensions Remain

The Asian and Pacific Rim markets, opened the week on a cautious note. Shares drifted higher as hopes for even more monetary policy easing boosted sentiment in the Asian region. However, traders are watching rising tensions between China and the United States.

Volume in the financial markets, not only in the Asian and Pacific Rim, in other areas will be low today as the United States and the United Kingdom are closed for a public holiday.

In Japan, the Nikkei 225 rose over 1.2 percent by mid-morning after news reports surfaced that Tokyo was considering another fiscal stimulus package totaling $929 trillion to help small to mid-sized businesses hit hard by the coronavirus lockdown.

Asian Traders Monitor tensions between China and the U.S.

On Frida, China proposed more national security rules against Hong Kong. Beijing released a number of details pertaining to new laws that would have a severe impact on the independence of the former British colony.

This new sparked new protests in Hong Kong who defied social distancing riles gather in the streets. The United States has warned China that they could face new sanctions.

The U.S. Commerce Department has said that there is a list of 33 Chinese companies and other institutions that could be blacklisted for human rights violations and concerns over U.S. national security.

Tensions between the two economic powerhouses has taken a hit since the start of the Covid-19 pandemic. The White House has accused China of covering up the coronavirus and its severity.

The two nations have clashed in the past over Taiwan and Hong Kong over human rights violations, trade routes, economic and military assistance.

Japan considers further Economic Stimulus

Last week, Japan released plans for even more fiscal stimulus to shore up a battered coronavirus economy. Tokyo wants an addition $280 billion in fiscal stimulus to assist small and mid-sized businesses impacted by the Covid-19 lockdown.

In other monetary stimulus news, in the region, the central bank of India cut their overnight refinance rate for the second time in 2020. The European Central Bank and the U.S. Federal Reserve also stand ready to act in anyway needed to support their economies.

The ECB is ready to expand their emergency asset purchase plan from last month, as well. This could happen as early as June.