Asian Stock market: Rebounds on pleasant market mood, DXY plunges, oil near $115.00
|- A broad-based optimism has been witnessed in the markets as Fed rate hike fears faded.
- The DXY has refreshed its monthly lows at 101.43, more downside looks possible.
- Oil prices are boiling on renewed supply concerns.
Markets in the Asian domain have rebounded strongly after following positive cues from the Western indices. The risk-on impulse has rebounded firmly and investors are pouring funds into the global equities. Therefore, bulls are enjoying liquidity on a cheerful Friday.
At the press time, Japan’s Nikkei 225 added 0.64%, China A50 jumped more than 1%, Hang Sang surged almost 3% while India’s Nifty50 gained 0.80%.
The US dollar index (DXY) has plunged in the Asian session as fears of jumbo rate hikes by the Federal Reserve (Fed) have started fading now. Investors are realizing the fact that the honeymoon period in which the central banks injected helicopter money is over now and it’s high time to return back to the neutral rates. Rising demand for risk-sensitive currencies has diminished the safe-haven’s appeal. The DXY has refreshed its monthly lows at 101.43. More downside looks possible considering the soaring market mood.
On the oil front, a rebound in fossil fuel prices has been witnessed as the expectations of an embargo on oil from Moscow bolstered. The EU urged Hungary to withdraw its opposition to the prohibition of Russian oil imports. Earlier, Hungary declined the proposal of a sudden ban on Russian oil amid its higher dependency on its energy requirements from the Kremlin. The black gold has jumped to near $115.00 and is expected to extend its gains further.
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