King Dollar's dominance casts a long shadow over Asian stocks, despite pockets of green

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Gold,Oil,Currencies

Despite a few glimmers of green, the relentless march of the King Dollar continues to loom like a storm cloud over Asian markets.

Asia wrap Risk appetite has been subdued as traders digest the reality that the Federal Reserve may not be in the mood to cut rates as aggressively as many had hoped. The U.S. economy's resilience, paired with rising concerns over ballooning fiscal deficits post-election, has forced investors to temper expectations for rapid policy easing—casting a chill across the region. In China, the big question is whether the stock market rally has any real staying power.

50% over the past year. Interestingly, despite the Fed's rate cuts last month and a subsequent 30bps rise in 10-year reals, gold has surged by 7%, highlighting a decoupling between the precious metal and real rates that began a year ago. While many have wondered about gold's rich valuation relative to real yields, it's difficult to find another lens through which to assess its price.

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