- Asian stocks pull up the sleeves on Wednesday tracking higher Wall Street.
- Higher corporate earnings, rising energy prices, and supply chain constraints book traders' diaries.
- IMF downgrades’ Asia pacific economic forecast, comments on Evergranda’s risk soothes investor nerves.
Asian stocks edge mostly higher on Wednesday, following the positive cues from the overnight gains on Wall Street as traders rejoice higher US corporate earnings. However, investors remain concerned about weaker global growth recovery amid supply chain disruptions.
Meanwhile, the International Monetary Fund (IMF) slashed its Asia-Pacific growth outlook for 2021 and warned that supply chain bottlenecks, inflationary pressures amid higher energy prices pose downside risks. Nevertheless, it raised the economic growth outlook for 2022.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.03%.
The Shanghai Composite Index is trading down 0.3%, following a downward revision by the International Monetary Fund (IMF) for China’s 2021 Gross Domestic Product (GDP) to 8% from 8.4% as recovery remained uneven.
The Nikkei 225 index gained 0.7%, tracking better-than-expected export data.
The ASX 200 traded higher 0.7% on Wednesday, Hang Seng hitting a 5-week high at 26,109.
The US Treasury yields rise higher at 1.65% with more than 1% gains.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.