Investor Confidence in Asia Grows as Stock Prices Rise on Expectations of Central Banks Maintaining Interest Rates Despite U.S. Federal Reserve’s Actions
Asia-Pacific Shares Outside Japan Rise 0.44% Following Holidays, South Korea’s Central Bank Holds Interest Rates Steady for Second Consecutive Meeting
China’s Low Consumer Price Index Strengthens Case for Economic Recovery Boost, While Asian Economies Prioritize Growth Over Inflation Control, Says Senior Economist
According to Ng, the 25 basis point rise now priced in by the market following strong U.S. employment data published on Friday may not be as large as expected. Although investors are optimistic about the end of the rate cycle, the question of whether we have already reached the top is driving the current market oscillation.
Meanwhile, Japan’s Nikkei 225 index advanced 1.34% as the market welcomed the new Bank of Japan governor’s commitment to maintaining ultra-easy monetary policy. The Japanese yen weakened 0.19% versus the dollar.
Australia’s S&P/ASX 200 index gained 1.25%, with miner Newcrest’s shares surging by as much as 7.1% due to an improved takeover offer from Newmont. In Hong Kong, stocks were mixed, with sentiment taking a hit after data showed that China’s demand weakness persists.
However, property developers rose, and the stock price of Chinese property developer Longfor Group 0960.HK jumped as much as 8.9% to HK$23.30, its highest since March 8. Shares of Chinese artificial intelligence company SenseTime reversed earlier gains, falling more than 6% on Tuesday.
The yield on benchmark U.S. Treasury 10-year notes fell by one basis point to 3.4055%. The dollar index edged down by 0.146% to 102.32, and the gold price rose 0.32% to $1996.25 as the dollar weakened.
In cryptocurrency news, major cryptocurrency bitcoin reached the $30,000 level for the first time in 10 months on Tuesday, adding to its steady gains as investors raised bets the Fed may soon end its tightening.
Bitcoin peaked at $30,438 in Asian trade and was last 2% higher at $30,262. It has gained about 6% since the start of the month, after rising 23% in March. In oil markets, U.S. crude gained 0.6% to $80.19 per barrel, while Brent was at $84.65, also up 0.6%.