- Asia-Pacific shares remain upbeat as inflation fears waning off.
- NZ dollar zooms higher after RBNZ surprise move on rate hike.
- Improved risk appetite keeps investors glued to riskier assets.
Asian stocks mark another successive trading session on Wednesday following the improved risk sentiment. The market digested the inflationary nervousness after the Fed reiterated its dovish stance on its monetary policy.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.25%.
The Asia-pacific stocks diverged from the Wall Street submissive performance on Tuesday. Dow Jones Industrial Average(DJIA) dropped 0.2%, NASDAQ recorded a fall of less than 0.1%.
Shanghai Composite Index gained 0.3%, Japan’s Nikkei jumped 1.8%, HangSeng rose 0.8%.
Shares in Australia also registered gains with ASX 200 gained 0.1%.
Fed officials have calmed down investors’ worries over strong inflation which might prompt the central bank to roll back its stimulus plan despite April’s US Consumer Prices which increased more than expected.
US Fed Vice Chair Richard Clarida said that the central bank would be able to restrain the outbreak of inflation while maintaining the economic outlook in place on Tuesday.
In addition to that, the Reserve Bank of New Zealand in a surprise move today turned the market mood upbeat while projecting a potential rate hike in September 2022 amid an improved economic outlook.
The US Dollar Index (DXY) stood at 89.69 after touching its lowest level since January on Tuesday. The USD valuation could boost the global trade and emerging markets on lower goods and service prices.
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