SINGAPORE : Asian shares rose on Thursday on investor hopes for China's emergence from the COVID-19 pandemic, while the dollar stayed under pressure even as the U.S. Federal Reserve had a warning against market bets on interest rate cuts this year.
"China reopening has a big impact...worldwide," said Joanne Goh, an investment strategist at DBS Bank in Singapore, since it not only spurs tourism and consumption but can ease some of the supply-chain crunches seen during 2022. E-commerce and consumer stocks were among the biggest gainers in Hong Kong, lifting the Hang Seng 2 per cent to a six-month high while reopening hopes have driven China's yuan to four-month highs and supported regional stocks and currencies.China has partially eased an unofficial ban on Australian coal imports and the Australian dollar made a three-week high overnight just below $0.69. It last bought $0.6833.
Fed committee members noted that"unwarranted easing in financial conditions" would complicate efforts to restore price stability, the minutes showed. Fed funds futures pricing shows traders think the benchmark U.S. interest rate will peak just below 5 per cent in May or June, before being cut back a little bit in the second half of 2023.
And tomorrow it will hit 4 months low 👏👏👏