Asian Stock Market: Rebounds as risk-appetite improves, DXY tumbles, oil near $100.00

• Asian equities have sensed a responsive buying activity after an intense sell-off.
• The DXY has tumbled below 103.60 amid an improvement in risk appetite.
• Falling oil prices have also supported the Asian equity markets.

Markets in the Asian domain have found responsive buyers in the Asian session after the market participants shrugged off the US inflation fears. The uncertainty ahead of the US Consumer Price Index (CPI) was underpinning the negative market sentiment from the past few trading sessions. Global equities and risk-sensitive currencies were facing an intense sell-off as any unexpected surge in the inflation numbers on Wednesday would compel the Federal Reserve (Fed) to dictate an extremely aggressive hawkish stance on the policy rates in June.

The odds of a 75 basis point (bps) are also strengthened as upbeat US Nonfarm Payroll (NFP) with heating inflationary pressures will leave no other choice for the Fed than to feature a bumper rate hike.

At the press time, Japan’s Nikkie225 tumbled 0.90%, China's SZEZ Component added 0.4%, and Hang Seng plunged almost 3% while India’s Nifty50 remained flat.

The funds from profit-booking in the US dollar index (DXY) have been channelized to the risk-perceived assets. The DXY has witnessed exhaustion in its uptrend after the asset renewed its 19-year high at 104.20. Meanwhile, the 10-year US Treasury yields have slipped to near 3.04%.

Apart from that, a significant slippage in oil prices has also supported the Asian equities. Oil prices have tumbled to near the psychological support of $100.00 as tightening curbs to contain Covid-19 in China have renewed demand worries. Also, the promise of pumping more oil by the OPEC cartel has received a green flag from the oil bulls.