Asian stocks surging on dovish fed comment, G20 intriguing a safe haven for Asian stocks
- Largely, Asian stocks gained a broad boost on Wednesday, when FED chairman Powel made a dovish comment regarding following on the path of its conventional (three-year-long) rate hike
- The upcoming G20 meeting is also helping the Asian stocks to attain a bullish bias
- American Dollar started to sink, as the investors started to doubt its large-scale rate hike
On Thursday, the Asian stocks are mostly traded higher, as investors are holding on to the recent dovish comment from FED chairman Jerome Power. On Wednesday, the FED chairman, Jerome Power had indicated a wide range of concerns amidst trade war turmoil, however, he also indicated that their recent policy might push aside its traditional rate-hike. In a recent comment, the US president, Donald Trump had also criticized the FED, because of its persistently hawkish pathway. Still, the US market is enjoying the speculation of a neutral interest rate, as the inflation rate is closer to the central bank target of 2%, and US stocks are surging.
In the face of recent G20 summit, the US-China trade war concerns seem to be on a pause for the moment, as the Asian stocks started to rise. Hope of some progress in the trade gridlock between US-China during the G20 summit is also helping the Asian stocks.
During the Asia pacific trading sessions, the Nikkei 225 surged by 0.7% and Shanghai was up by 0,2%, while ASX added 0.7%. As, this emerging market outlook and positive breakthrough have been triggered by the Dovish comment that FED chair Jerome Powel said yesterday, the positive market mood would persist up to December 6th, as FED will have another press conference at that time regarding the market outlook.
Across the board, the American Dollar has been weak throughout the day, as it has been trading in a tight range around 96.25. Alongside Asian stocks, the AUD has also been bolstered by this US Dollar weakening.
AUD/USD daily chart
While the Asian stocks are surging with the hope of a possible resolution of this timid trade-war, the G20 Summit would be starting with a wishful thought of bringing US president Donald Trump and Chinese PM Jinping on the same alignment to fetch a tradable trade agreement, where businesses could carry out trades with much confidence and the market outlook would route through a positive course. Anticipation rose high, as the global leaders are going to meet in G20 summit this week in Buenos Aires, Argentina.
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.]