Asian stocks rally strongly as Fed hike, Ukraine talks boost sentiment - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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Japan and Hong Kong led a jump in regional stocks on Thursday, joining a rally on Wall Street overnight as potential risks from Federal Reserve monetary tightening to the Ukraine war and a slowdown in China became less murky.

Treasury yields eased a little after spiking to nearly three-year highs overnight – with shorter-end yields rising more to flatten the curve – after the Fed raised the policy rate for the first time since 2018.

Meanwhile, investor concerns about a sharp slowdown for China, which is battling a spreading COVID-19 outbreak with ultra-restrictive measures, were assuaged on Wednesday after Vice Premier Liu He signalled more stimulus to support markets. Stocks stayed strong despite the Fed’s more hawkish tilt because Chair Jerome Powell “emphasised that the economy was strong enough to withstand hikes, saying he wasn’t concerned by the possibility of a recession,” National Australia Bank economist Taylor Nugent wrote in a client note.

The two-year Treasury yield hit 2.002% after the Fed decision before easing to 1.9235% in Tokyo trading, while the 10-year yield jumped to 2.2460% and then eased to 2.1545% on Thursday.The safe-haven greenback was out of favor though amid the improvement in market sentiment, and while the outcome of the Fed meeting was on the hawkish side, analysts saw it as within the bounds of market expectations.

 

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