Asian stocks, Nikkei 225, Fed policy trending points
- Asian stocks had surged to 4-month high, as Fed turned out to be more cautious yesterday (Jan. 30th) and US dollar experienced a steep decline in price.
- European stocks open higher, as UK’s FTSE 100 was 0.55 percent in the midday European trading session.
- Global stocks lifted including the emerging market shares, as Federal reserve signalled a potential conclusion to the rate hike cycle.
Asian Shares surge, despite growing turbulence in US-China tariff talk
On Thursday, the 31stof January, the Asian stocks were lifted to a four-month high, after the Fed had pledged allegiance to a better outcome in the Wall St., amid intense geo-political tension and tariff war with China.
Nikkei 225 daily price chart
Following an upsurge of Asian stocks led by Nikkei 225, which had secured an intra-day gain of 1.03 percent to 20,773.37, the European stocks had also started the day higher, as the UK’s FTSE 100 was being traded 0.55 percent higher, to 6980.03. Meanwhile, the Germany’s DAX climbed over 0.3 percent and the Paris CAC 40 had also surged over 0.3 percent.
Looking at the Asian stocks, the MSCI’s broadest index of Asia-Pacific shares outside Japan had soared to its highest level since October 4th, 2018, up by 0.9 percent, meanwhile the mainland Shanghai Composite Index had climbed over 0.3 percent despite China’s contracted factory activity.
Hong Kong 33 daily price chart
Alongside, the South Korean KOSPI had added over 0.3 percent and the Wall St. had closed the market posting its record intra-day gain yesterday (Jan. 30th), while today’s US stocks are expected to be opened higher as well.
Despite an ongoing tariff talk, the Asian shares had surged today, although there had not been yet any report, that could potentially support the market momentum. If the tariff talk does not go along well, and ended up without reaching a decipherable deal regarding Intellectual property transfer right and the independence of US companies doing business in China, today’s upsurge would likely to be evaporated.
On the flipside, an upbeat tariff talk would add further ignition to that dovish rate talk, which was rekindling the Asian stocks alongside currencies today (Jan 31st).
Read more on Asian stocks here
[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]