It’s a rocky road for Asian stock markets as renewed US banking jitters create immense selling pressure. The Japanese stocks have taken a sharp dip, despite the Bank of Japan’s (BoJ) chances of continuing their ultra-dovish monetary policy. However, there’s some good news too, as the oil prices have risen above $77.50 ahead of the US Energy Information Administration’s (EIA) report on the inventory data for the week ending April 21.
Unfortunately, even the upbeat earnings reported by United States technology stocks on Tuesday, including Microsoft and Google, have failed to lift the market mood in Asia. The Fed’s higher interest rates have also not helped, and the weak quarterly performance from First Republic Bank has further worsened the situation, leading to immense selling pressure.
At present, Japan’s Nikkei 225 has tumbled by 0.77%, Shanghai has dropped by 0.23%, Hang Seng has gained 0.64%, and Nifty50 has eased by 0.03%. It’s not all doom and gloom, though, as the Australian inflation has softened sharply but remained marginally higher than the estimated values, supporting the Reserve Bank of Australia (RBA) for the continuation of a steady interest rate policy.
The US Dollar Index (DXY) has delivered a breakdown of the consolidation formed in a narrow range above 101.80 in the Asian session. Investors are not anxious ahead of the United States Durable Goods Orders data, as the USD Index is in a further correction mode.
It’s no secret that Japanese stocks have taken a beating, but there’s still hope as the new BoJ Governor Kazuo Ueda has no other option than to continue the expansionary monetary policy to keep inflation steadily above 2% by creating domestic demand. Meanwhile, oil prices have stretched their recovery above $77.50 ahead of the oil inventory data to be reported by the EIA. It’s a good time to invest in oil stocks, so keep an eye out for any potential opportunities!
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