Asian Stock Market: Softer US Inflation infuses adrenaline rush, oil soars

Asian equities have soared while Nikkei 225 has eased 0.65%.
Signs of exhaustion in the inflation rate have cheered the risk-perceived assets.
Oil prices have surpassed $90.00 despite a buildup of oil inventories last week.

Sagar Dua FXStreet

Markets in the Asian domain have jumped sharply as investors’ risk appetite has improved dramatically after a soft landing of the US Consumer Price Index (CPI) on Wednesday. US equities remained upbeat after the US Bureau of Labor Statistics reported the plain-vanilla inflation rate at 8.5% on an annual basis, lower than the already downward consensus of 8.7%. At the same time, the core CPI that doesn’t inculcate volatile food and oil prices remained unchanged at 5.9%.

At the press time, China A50 surged 1.40%, Hang Seng jumped 1.90%, Nifty50 gained 0.80%, and Japan’s Nikkei 225 surrendered 0.65%.

The market participants were cautious as the Federal Reserve (Fed) was expected to remain harsh on interest rates after the release of the upbeat US Nonfarm Payrolls (NFP). Well, hawkish bets are still not down as the Fed has a long way to go to reach the neutral rate. But signs of exhaustion in the runaway inflation have cheered the risk-sensitive currencies.

Meanwhile, the US dollar index (DXY) is facing barricades around 105.40, and a downside move could resume as the lower inflation rate has not only trimmed the odds of prolonged hawkish guidance but has also trimmed recession fears.

Oil prices have swiftly crossed the psychological resistance of $90.00 as recession fears have trimmed. This could be a pullback move as the Energy Information Administration (EIA) reported a decent buildup of oil inventories last week. The EIA oil stockpiles landed higher at 5.458 million barrels than the prior release of 4.467 million barrels.

Nikkei 225

Overview
Today last price	28138.31
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	28138.31

Trends
Daily SMA20	27715.96
Daily SMA50	27146.19
Daily SMA100	27077.64
Daily SMA200	27482.51

Levels
Previous Daily High	28175.92
Previous Daily Low	27692.89
Previous Weekly High	28200.01
Previous Weekly Low	27904.31
Previous Monthly High	28084.42
Previous Monthly Low	25801.44
Daily Fibonacci 38.2%	27991.4
Daily Fibonacci 61.8%	27877.41
Daily Pivot Point S1	27828.83
Daily Pivot Point S2	27519.34
Daily Pivot Point S3	27345.8
Daily Pivot Point R1	28311.86
Daily Pivot Point R2	28485.4
Daily Pivot Point R3	28794.89

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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