Investors in the Asia Pacific region face a mixed and modest outlook to begin the trading week. European and US share markets finished with gains for the day and week, but lower commodity prices and a weakening USD may weigh on markets in early trading. Japanese trade data may influence, but investors eyeing the beginning of Brexit negotiations and the approaching financial year end could remain cautious.
Trade numbers from Japan are expected to show double digit gains in both imports and exports. If the numbers drop in line they could underpin a modestly positive trading day, offsetting weaker than expected housing data from the US.
Falling gold and oil prices will likely see resource stocks underperform today. The swing factor for the Australian index is financial stocks. Surprising strength in the higher dividend yielding sector and the AUD point to international participation in the local share market. Global investors seeking income streams will likely determine today’s finish. Speculation that SMSF investors are driving recent gains ahead of July 1 rule changes could boost early trading.