Asian Markets Rally: Global Indices Surge to New Heights

Asian markets surge on central bank actions, global indices hit new highs, and commodities, interest rates, and critical data are analyzed.

Asian Stock Markets: In a bullish move, the Nikkei soared by 1.47%, while the Shanghai Composite experienced a marginal decline of 1.04%. The Hang Seng added 0.48%, and the ASX closed higher by 0.65%.

Commodities: Gold saw a modest increase at $2055.5 (0.17%), and Silver followed suit at $24.13 (0.04%). Brent Oil and WTI Oil exhibited resilience, recording gains at $79.06 (0.23%) and $74.17 (0.34%), respectively.

Interest Rates: Across the globe, the US 10-year yield stood at 3.899, the UK 10-year yield at 3.686, and the Germany 10-year yield at 1.996.

Key News & Data:

• In Canada (CAD), the Consumer Price Index (CPI) month-over-month (m/m) exceeded expectations at 0.1%, contrary to the anticipated -0.1%.
• The Median CPI year-over-year (y/y) in Canada surpassed expectations, reaching 3.4% against the projected 3.3%.
• Trimmed CPI y/y in Canada came in at 3.5%, slightly surpassing the expected 3.4%.
• In the United States (USD), Building Permits stood at 1.46 million compared to the expected 1.47 million.
• Housing Starts in the US reached 1.56 million, exceeding the expected 1.36 million.

Asian Markets Rally: Global Indices Surge to New Heights

Market Update:

Asian markets witnessed a robust surge on Wednesday. Japan’s stocks extended gains as the Bank of Japan maintained its ultra-loose monetary policy, retaining interest rates at -0.1%. The commitment to the yield curve control policy and Governor Kazuo Ueda’s dovish tone at the press conference significantly bolstered positive sentiment.

China’s People’s Bank mirrored this optimistic trend by holding its one-year loan prime rate at 3.45% and the five-year benchmark loan rate at 4.2%, aligning with Wall Street’s rally. The S&P 500 approached its peak, and the Dow Jones Industrial Average continued its upward trajectory for the ninth consecutive day.

Australia’s S&P/ASX 200 reached a 10-month high, closing 0.65% higher at 7,537.90. Hong Kong’s Hang Seng index gained 0.48%, while China’s CSI 300 was the only primary Asian market to dip, falling by 0.52%.

Japan’s Nikkei 225 rose 1.47%, and the broader Topix climbed 0.9%. South Korea’s Kospi led gains among Asia-Pacific markets, surging by 1.72%, while the small-cap Kosdaq added 0.44%. On Wall Street, the S&P 500 increased by 0.59%, nearing its record high. The Dow Jones Industrial Average rose by 0.68% to 37,557.92, while the Nasdaq Composite reached above the 15,000 level for the first time since January 2022, advancing by 0.66% to 15,003.22.

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