GLOBAL MARKETS – Asian Stocks Hit 2-Month High On Wall St Rally, Fed View

published on: 21 November 2023 last updated on: 21 September 2024
Asian Stocks Hit 2-Month High

Asian shares climbed to fresh two-month highs on Tuesday, boosted by a rally on Wall Street, while the dollar languished near its lowest in two-and-a-half months on expectations the U.S. Federal Reserve is likely done with interest rate hikes.

MSCI’s broadcast index of Asia-Pacific shares outside of Japan was higher than 0.91% more at 509.82 while touching 510.42, which is the highest since September 18th. The index has been up by 7% for this month and is also on course for the largest monthly profit since January.

Japan’s Nikkei has eased 0.15% after hitting the highs not seen since 1990 on Monday. The index has been up roughly by 28% this year, which made it the best performing stock market in the whole of Asia.

The blue-chip CSI300 index of China was higher by 0.66%, while the Hang Seng Index of Hong Kong profited by 1.25% as easing the U.S Sino tensions lifted the sentiments.

On Monday, the three major stock averages of the Wall Street increased, with Nasdaq’s 1% rally taking lead of the charge as heavyweight Microsoft had hit a record high after hiring Sam Altman, who was heading OpenAI until he was exiled late the previous week.

Investor focus on Tuesday will sternly be on the earnings from Nvidia and also the minutes of the last meeting of the Federal Reserve to measure which way the rates are headed.

The stock markets have widely rebounded in November as a burst of data that portrayed that US inflation may be easing has urged bets that the Federal Reserve is done with its monetary tightening and rate cuts might be an anticipation for the next year.

“It only takes another strong inflation print or more consumer/labour market strength, and rates would head higher again,”

said an APAC investment strategist Ben Bennett.

“My main concern is … that we’ll see some disappointing data around the turn of the year, which will focus attention on the risk of recession.”

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upasana sarbajna

Upasana is a budding journalist who has a keen interest in writing. She considers writing as therapeutic and is most confident when she writes. She is passionate about music, movies and fashion. She writes in a way that connects with the audience in a personal level. She is optimistic, fun loving and opinionated.

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