Off in Japan restricts bond market moves in Asia and hence DXY gets the chance to pare post-Fed gains.Upbeat service sector data from India favor markets ahead of RBI’s special meeting.decision during early Thursday. The risk-aversion could also be linked to China’s covid woes and geopolitical fears emanating from North Korea. However, holiday in Japan and a light calendar elsewhere restricts the market moves of late.
It should be noted that the mixed Aussie trade numbers and downbeat China Caixin Services PMI exert downside pressure on the ASX 200. Further, markets in Hong Kong lead the bears as HKMA copies the Fed’s 0.75% rate hike. It should be noted that the Fed’s 75 bps increase in the benchmark rate initially triggered the market’s optimism as the rate statement highlighted the odds of a slower rate hike. The update stated, “Cumulative tightening of , the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.