SINGAPORE, Jan 25 — Asian equities extended their winning run to scale their highest levels in seven months today, with South Korean stocks leading the way, and the Australian dollar hit multi-month highs as surging inflation made higher interest rates more likely.
“It appears that markets are increasingly seduced by “Goldilocks” outcomes of tightening risks tamed yet recession risks tempered,” Mizuho analysts said in a note. The euro held near a nine-month peak against the dollar, as trades were encouraged by a rosier growth outlook for the euro zone against signs of a recession looming in the United States.
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