Asian Stocks Rally, Focus on Economy and Interest Rates
Asian stocks opened higher at the start of the week, with Japan leading the surge after the Bank of Japan (BoJ) eased concerns about a planned large-scale ETF sale. The Nikkei 225 index jumped 1.3%, recovering from the BoJ's comments that had previously weighed on the market. Shares in Australia and South Korea also rallied. Meanwhile, the dollar index edged up 0.1%, and oil prices rose 0.3% after experiencing a small decline last week.
The Bank of Japan's statement on a long-term plan to reduce ETF holdings helped ease concerns in the Japanese market. Positive sentiment was also boosted by remarks by US President Donald Trump, who cited progress in relations with China, including a planned meeting with President Xi Jinping. Wall Street closed the week higher, boosted by expectations of further interest rate cuts that could improve corporate profit prospects.
However, US markets faced uncertainty after Trump proposed a $100,000 increase in H-1B visa application fees, a move that has affected the technology industry, particularly in California. The proposal adds pressure to the global technology sector, particularly in India, which is already experiencing slow growth and tensions between Trump and Prime Minister Narendra Modi.
In China, investors are focused on one- and five-year loan rates, which are expected to remain stable for the fourth consecutive month. Key economic data from Europe and inflation indicators from the Federal Reserve will also be in focus this week, along with Fed Chairman Jerome Powell's speech on the economic outlook on Tuesday. (ads)
Source: Newsmaker.id
