- Asia-Pacific equities trace Wall Street’s gains even as Japan cheers extended weekend.
- China’s openings of international borders, year-end shopping spree favor sentiment.
- Downbeat US data weigh on hawkish Fed wagers, tease US recession.
- Light calendar, off in Japan restrict market moves ahead of inflation data from China, Japan and US.
Market sentiment improves in Asia as China drops the last flag of the zero-Covid policy and the softer US wage growth data challenged hawkish Fed wagers. Even so, an absence of traders from Tokyo and a light calendar, as well as a cautious mood ahead of this week’s key inflation data, restrict the volatility during early Monday.
While portraying the mood, MSCI’s index of the Asia-Pacific shares outside Japan rises 2.25% to print the highest levels since late September. On the same line could be the shares from South Korea, Taiwan and India as each one of them rises over 1.0% intraday by the press time.
Chinese blue-chip stocks cheer the latest shopping spree in the dragon nation, as per the early activity signals for December and early January, whereas Australia’s ASX 200 and New Zealand’s NZX 50 trace equities in Beijing due to their trade ties with the Asian major.
It should be noted that mildly bid ASX 200 ignores downbeat prints of Aussie Building Permits for November.
China’s reopening of the international borders after a three-year blockage bolstered optimism in Asia. Also favoring the risk appetite could be comments from the People’s Bank of China (PBOC) Official who hinted at robust growth expectations from the dragon nation.
Additionally, Friday’s downbeat prints of US Average Hourly Earnings, ISM Services PMI and Factory Orders pushed back the hawkish hopes from the US Federal Reserve (Fed) as the figures raised US recession concerns. The same joined mixed comments from the Fed policymakers and hopes of an upbeat US earnings season to also favor risk-on mood in Asia.
On a broader front, S&P 500 Futures print mild gains while India’s benchmark equity index BSE Sensex rises over 1.0% by the press time. Also portraying the risk-on mood could be the upbeat oil prices, as well as the softer prints of the US Dollar Index (DXY).
Looking forward, a light calendar may allow the equity bulls to keep the reins but this week’s inflation data from the US, China and Japan are crucial for near-term direction.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales
Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.