Nikkei rises on strong USD while other Asian equities drop

Rise in Fed rate hike bets and the resulting strength in the US dollar is boding well for Japan’s benchmark Nikkei index even though other stock markets are trading moderately lower.

At the time of writing, Japan’s Nikkei index was up 0.77%. Australia’s S&P/AX 200 dropped 1%, while Hong Kong’s Hang Seng was down 0.20%. Taiwan and South Korea’s Kospi were down 0.10% and 0.25% respectively.

Japanese shares are leading other Asian majors as Dollar-Yen pair is looking to extend gains above 103.00 handle. Investors await Friday’s payrolls data, which will provide more clarity on the timing of a tightening.