Home Industry Markets Asia shares rise, dollar falls...

Asia shares rise, dollar falls as ECB comments boost risk appetite


Asia shares rise dollar falls

Tuesday's gains in Asian equities came despite the dollar staying weak for a third straight session as ECB rate cut expectations reduced risk appetite.

Gains were constrained in light of this week's important inflation data.

The opening of Europe is expected to be a little firmer, as EUROSTOXX 50 futures are up 0.2%. The gain from the previous night would increase because European Central Bank executives said that the bank can lower interest rates when inflation decreases. The markets are already expecting two rate cuts by October this year as the discussion focuses on future steps. As a result, this caused an increase in Wall Street stock futures before the US markets reopened after a public holiday.

NASDAQ futures gained 0.2%, while S&P 500 futures increased by 0.1%. Following a 0.9% gain on Monday, MSCI's broadest index of Asia-Pacific equities outside of Japan increased by 0.2%. Taiwanese stocks reached a record high of 0.5%, while the Hang Seng Index in Hong Kong lost some of its early gains to close at 0.1%. In contrast, the Nikkei of Japan fell 0.2%, partially undoing a 0.7% gain from the previous day.

The main risky events of the week will occur on Friday. Trade will be affected by statistics on European inflation and core personal consumption expenditures (PCE), which is the preferred inflation measure used by the Federal Reserve.

Traders were waiting for the PCE announcement, and the dollar was weaker than other major currencies for the third session in a row on the foreign exchange markets. It ended the last session down by 0.1%.

The yearly forecast suggests a 2.8% increase, but there are some risks. The forecast for April is a 0.3% increase compared to the previous month. Just a little bit stronger than the crucial 157 mark, the Japanese yen held steady at 156.78 per dollar. The value of the currency kept dropping compared to many other high-yield currencies. On Tuesday, the New Zealand dollar reached a new 17-year high of 96.56 yen.

Business News

Recommended News

Latest Magazine