Asian Stock Market: Trades mix as Wall Street corrects, DXY stabilizes, oil advances

• Asian equities have witnessed a corrector after a firmer recovery as oil advances.
• The unavailability of any potential trigger has turned the DXY sideways.
• A speech from Fed Powell will provide hints of likely monetary policy action in July.

Markets in the Asian session are trading mixed as the US indices traded subdued on Monday. The unavailability of any potential trigger has paused the global assets. The US dollar index (DXY) is trading lackluster in the Asian session as investors are awaiting the speech from Federal Reserve (Fed) chair Jerome Powell, which is due on Wednesday. Also, the US Gross Domestic Product (GDP) numbers will release along with Fed Powell’s speech.

At the press time, Japan’s Nikkei225 added 0.25% while China A50 eased 0.17%, Hang Seng surrendered 0.80%, and Nifty50 eased 0.62%.

The odds of a 75 basis point (bps) rate hike by the Federal Reserve (Fed) have advanced as the upbeat Durable Goods Orders have indicated that the demand prospects in the US economy are rock solid. Considering the forecasts for the US economic data at 0.1%, investors believed earlier that rate hikes by the Fed have impacted significantly on the growth forecasts. However, the release of the economic data at 0.7%, much higher than the estimates, and the prior print of 0.5% have empowered the Fed to announce policy tightening measures without much hesitation.

On the oil front, a firmer rebound in the oil prices has brought a correction in the Asian equities after a strong recovery. Investors have returned to the betting counter of supply constraints rather than taking chances on global recession fears. The oil prices have climbed above $110.00 and are holding above the same effortlessly.