Asian Stock Market: Buoyed amid risk-on sentiment, growth optimism
- Asia-Pacific edges higher on Tuesday following Wall Street gains.
- Lower US Treasury yields keep demand for the US dollar limited.
- Investors jump on riskier assets as inflation fear diminishes.
Asia-Pacific indices are trading in the green due to global growth optimism and the fallout of the US dollar. The gains could be traced back to the upbeat New York session on Monday.
The inflationary pressure lightened up as Fed officials continued to downplay rising price concerns and termed the recent demand-supply disruptions as transitory. The top priority remained full employment and growth for the central bank, despite improved labor market conditions.
The benchmark US Treasury yields remained on a lower note at 1.60%. This, in turn, makes the US dollar valuation less attractive to investors as they dumped it for riskier assets.
MSCI’s broadest index of Asia-Pacific shares outside Japan was trading with gains of 1% and reaching a two-week high.
Shanghai Composite Index rose 1.39%, and Hong Kong’s Hang Seng index climbed 1.05%. Meanwhile, the Australian ASX 200 gained 0.47%, while Japan’s Nikkei rose 0.6%.
The market is keenly waiting for US Personal Consumption data, the Fed’s preferred inflation measure. Apart from that, other readings on tap are Gross Domestic Product (GDP), Jobless Claims and Durable Goods data on Thursday.
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
