The majority of Asian stocks are looking at a positive note opening this week as the Federal Reserve’s dovish outlook pushed investors’ interests on the sides. The lackluster and soft US data also pushed investors to favor the growing Asian market and sending the US dollar on a bit of debacle creeping closer to the 10-month low.
Asian Stock on the Rise
The Chinese stocks were looking to have an unbelievable rebound after falling by 2% on earlier market trading; the losses were mainly focused and rooted from the faster than expected economic growth from the second largest economy in the world. Even with the recent upsets, the majority of Chinese stocks were recuperating shortly after.
Blue chip stocks were the main benefactors on the outstanding Monday performance; the economic growth data from the country was tallied to be at 6.9%, which is still faster than most analysts are expecting. The robust growth is made possible by the staggering industrial output performance and retail sales growing over the board.
According to the UBP’s strategist Koon Chow, "The China data was very helpful," and "I think it had a particular resonance after Friday's (weaker than expected) U.S. CPI and retail sales data ... so it is extending the Goldilocks environment,"
More Asian Stocks
On the other hand, MSCI’s broadest index of Asia-Pacific shares outside Japan was looking to be experiencing a great Monday; increases for the index were on a roll until they eased at the 0.3% increase in the China readings. The rest of the Japanese markets were closed due to the holidays but are poised on having a great opening day this week.
The Dow and S&P 500 hit new highs as consumer prices remained stagnant for the month of June and retails are going on a bit of a slump for two consecutive month; the retail downturn is pushed by controlled inflation and the newfound distaste on the economic growth forecasts which in return, made Fed’s outlook more dovish than of expected.
Aussie and Korean Stocks
The Australian stocks were trailing behind with a decrease of 0.2% on today’s market, while the South Korean stock KOSPI managed to catch the tailwind with a total of 0.4% increase on earlier trading. On the contrary, the Australian dollar manages to keep up its overwhelming pace and continue its rally hitting a new milestone after two years before easing to $0.7823.
The Canadian dollar was also trading at higher rates due to the dovish outlook from the Fed; it manages to hit one-year high on earlier trading before settling at $1.2655. Major currencies such as the euro and the pound were also trading higher against the dollar; the GBP/USD is at $1.31 as of writing, while the EURO/USD was at $1.15.
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