Asia stocks open higher in muted trade
|With US investors buoyed by unexpectedly benign PCE readings, the Santa Rally sled has gained momentum.
Even though many in the region are still shaking off a bit of a holiday hangover, with several markets closed for Boxing Day, Asian stocks opened higher, riding a favourable wave from China's financial bond juggernaut. China remains a focal point after its central bank maintained the interest rate on the one-year medium-term lending facility at 2% on Wednesday, aligning with economists' forecasts. This cautious approach suggests the bank keeps its options open in light of potential escalations in trade tensions with the US.
Moreover, a recent government announcement detailed plans to broaden the investment scope of local government special bonds and increase their use as project capital, signalling a proactive fiscal stance.
Meanwhile, Bank of Japan Governor Kazuo Ueda's latest remarks influenced bullish regional sentiments. In a speech on Wednesday, he refrained from signalling a potential rate hike next month, emphasizing instead the importance of continuously monitoring economic risks. This stance has led traders to speculate about a possible delay in rate hikes, perhaps pushing expectations back to March, which nudged the yen lower.
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