Japanese stocks shrug off poor trade balance data to post decent gains

Nikkei 20-02

Asian equities are a little mixed but Japanese stocks have performed admirably today as investors appear to be focusing on a more optimistic outlook with regards to US-China trade talks rather than economic data for last month.

Japan's trade balance widened in January as exports sank heavily but that isn't enough to sour the mood in the Nikkei today. The more positive mood is also seen in the Hang Seng index as it is up by 0.9% currently riding on gains from financial stocks.

However, mainland Chinese stocks are more subdued with the Shanghai Composite trading near flat levels as we move towards the final hour of trading there.

Looking ahead, I wouldn't expect European equities (and risk assets in general) to see much change from yesterday's sentiment as US stocks and futures are also flattish on the day so far.