Asian Stocks Rise In Thursday (3/3) Morning Trading, Following Wall Street’s Rise

Asian Stocks Rise In Thursday (33) Morning Trading, Following Wall Street's Rise – Asian Stocks Rise In Thursday (3/3) Morning Trading, Following Wall Street’s Rise

Asian Exchange

Asian stocks rose in trading Thursday (3/3) morning, at 08.25 WIB, the Nikkei 225 index rose 242.52 points or 0.92% to 26,636.68, the Hang Seng rose 90.34 points or 0.40% to 22,434, 26, Taiex rose 135.24 points or 0.76% to 18,003.22, Kospi gained 27.78 points or 1.05% to 2,731.87, ASX 200 gained 53.64 points or 0.78% to 7,172.40 , the Straits Times rose 27.42 points, or 0.87%, to 3,272.29 and the FTSE Malaysia rose 6.93 points, or 0.43%, to 1,605.03.

The gains in Asian markets were supported by reassuring comments from the Federal Reserve that propelled Wall Street’s rally, although the Ukraine war sent oil and other commodity prices soaring higher.

Western countries have tightened sanctions on Russia as Ukraine’s second major city, Kharkiv, came under heavy bombardment on Wednesday and dozens of countries referred Moscow for investigation for potential war crimes.

“So far, investors seem to be ignoring opportunities for greater ‘stagflation-lite’, which means sanctions are generating more inflation in developed markets and lessening economic growth,” said Thomas Mathews, market economist at Capital Economics.

MSCI’s index of Asia-Pacific shares outside Japan rose 0.4% and pulled away from a recent 15-month low. Japan’s Nikkei was up 1.0%, while a rush into commodities lifted resource-rich Australia 0.9%.

European stocks also got a reprieve from the sell-off, although analysts at JPMorgan gave a stern warning to clients.

“We believe investors should underestimate the Euro area in both the currency and equity space given its vulnerability to further escalation,” they wrote in a note.

“We revised our commodity price forecasts 10%-20% higher overall in light of the ongoing geopolitical crisis,” they added.

“One takeaway is that the crisis is forcing a dovish reassessment of the Fed by markets, and we continue to assume a ‘moderate’ climbing path.”

Fed Governor Jerome Powell on Wednesday said interest rates were likely to be raised by just 25 basis points this month, and the war in Ukraine had made the outlook “very uncertain”.

However, Powell warned the Fed may have to raise more aggressively if inflation continues to pick up. That sent some of the safe-haven out of Treasuries and the 10-year yield shot back to 1.878%, from Tuesday’s two-month trough of 1.682%.

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