Asian stocks up on hopes Fed will adopt slow approach to more hikes
Asian shares rose on Friday after Wall Street reversed losses on signals of a measured policy tightening approach from the U.S. Federal Reserve as well as on prospects of a solid economic recovery in China.
Global markets have been buffeted by a raft of strong U.S. data over recent weeks, including U.S. jobless claims overnight, that suggested the Fed will need to raise rate further and for longer.
But investors breathed a sigh of relief after Atlanta Federal Reserve President Raphael Bostic said he favoured “slow and steady” quarter-point U.S. rate increases to limit risk to the economy. read more
Markets are also watching out for China’s annual meeting of parliament, which kicks off on Sunday, to set economic targets and elect new top economic officials.
Emerging signs of a steady rebound in China’s economy following the relaxation of stringent curbs in December have also helped to revive appetite for riskier assets.
“We expect the government to provide a pro‑growth policy agenda, with support for both infrastructure and property sectors,” said analysts at Commonwealth Bank of Australia in a note.
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