- The US and China signals readiness to talk trade at the G20.
- ECB President signals monetary policy easing, if needed, and turns dove.
- Fed meeting grabs the spotlight for now.
With the US and Chinese media going loud over the communication signaling an end to the trade deadlock, Asian investors welcome the trade positive news ahead of today’s Federal Reserve meeting.
Adding to the market sentiment is expectations of a bit dovish comments from the US Federal Reserve Chairman Jerome Powell after his European counterpart Mario Draghi turned dove in his speech at yesterday’s ECB Forum in Sintra.
As a result, MSCI’s index of Asia-Pacific shares ex-Japan surged 2.7% by the press time whereas Japan’s Nikkei was also marking 1.8% gains.
Wall Street closed in the positive territory with the headline DJI30 scoring more than 350 points, Nasdaq securing 1.4% profits and S&P500 being green by almost 1.0%.
China’s Hang Seng is on its rally towards 2.4% gain while Indian’s BSE Sensex holds 0.8% profits. Further, Australia’s ASX 200 and New Zealand’s NZX 50 also follow Chinese shares and mark more than 1.0% increases despite witnessing early-day disappointment from domestic data.
Risk tone also recovers as the benchmark 10-year US treasury yield rise by nearly 1.5 basis points (bps) to 2.072% by the time of writing.
While the latest dovish appearance of the major global central banks heightened concerns of the Fed’s bearish appearance, surprisingly positive comments from the Fed Chair and/or upward revision to quarterly economic forecast could weigh on equities