Asian Stock Market: Positive in a holiday-truncated week, ECB’s monetary policy eyed

• Asian markets are positive, following the footprints of the US markets.
• The risk-on impulse has dragged the DXY below 100.00.
• The ECB is expected to keep the interest rates unchanged.

Markets in the Asian domain are firmer in the last trading session of this week as indices will remain close on Friday on account of Good Friday. The Asian indices are tracking the firmer Wall Street amid a risk-on impulse, which has trimmed the demand for safe-haven assets.

At the press time, Japan’s Nikkie225 jumps 1.20%, China A50 gains 1.30%, and Hang Seng adds 0.75% while the Indian bourses are closed on account of Dr. Baba Saheb Ambedkar Jayanti.

The US dollar index (DXY) has witnessed an intense sell-off after investors shrugged off the fears of higher US Inflation. The DXY is balancing below the critical figure of 100.00 after ending the winning streak of nine-trading sessions on Wednesday. An improvement in the risk appetite of investors after a modest long uncertain period has dented the demand for safe-haven assets. Meanwhile, the 10-year US Treasury yields have eased almost 5.7% to 2.68% after printing a fresh three-year high at 2.84% on Tuesday.

In the European session, wild moves in the Asian markets are highly expected as the European Central Bank (ECB) will announce its monetary policy. The stance on interest rates is likely to be ‘neutral’ as per the forecasts however, a hawkish guidance could dent the positive market sentiment.  It is worth noting that the ECB has yet not raised its interest rates while the Western allies have already paddled the borrowing rates.