Asian Stock Market: Traces firmer S&P500 Futures on Fed pivot clues, ignores banking fears, Oil’s recovery
- Asia-Pacific shares remain firmer as Fed hints at policy pivot.
- Upbeat Aussie trade numbers, off in Japan and softer China Caixin Manufacturing PMI check equity buyers.
- Oil price recovers after falling to the lowest since December 2021.
- Banking woes worsen in US as PacWest Bancorp teases asset sale.
Asia-Pacific markets edge higher on early Thursday as equity buyers cheer Fed’s dovish rate hike amid mixed concerns at home. Adding strength to the recovery moves could be the recently firmer S&P500 Futures and the consolidation ahead of another key event, namely the European Central Bank (ECB) monetary policy meeting.
While portraying the mood, MSCI’s index of Asia-Pacific shares outside Japan prints 0.60% intraday gains while off in Japan limits the market moves. Additionally portraying the cautious optimism are mixed plays surrounding the US stock futures and recently firmer price of Oil, as well as banking woes in the West.
Fed’s 0.25% rate hike fails to inspire currency hawks as the omission of statements supporting further rate hikes and higher importance to the data dependency favor market bears. The same joins upbeat Australia trade numbers and the Bank of Japan’s (BoJ) defense of easy money policy, as well as China’s downbeat PMIs, to keep the equity buyers hopeful.
On the contrary, PacWest Bancorp teased an asset sale late Wednesday and propelled the market’s banking woes. Further, the White House statements suggesting debt limit default could cost 8.3 million job losses also weigh on the sentiment.
It’s worth noting that the WTI crude oil’s recovery to $69.00 joins hawkish hopes from the ECB and the Hong Kong central bank’s rate hike to challenge the market’s recent optimism.
As a result, stocks in Australia and South Korea print mild losses while those from New Zealand and China lead the bulls. That said, Indian equities are also firmer whereas S&P00 Futures snap three-day downtrend while printing 0.25% intraday gains near 4,120 at the latest.
Also read: Forex Today: Dollar slides as Fed delivers as expected