Asian Stock Market: Rebounds broadly on positive market mood, Fed signals more hikes

• Asian stocks bounce firmly as DXY loses strength amid a time correction process.
• Chinese indices are gaining continuously on the withdrawal of tariffs on Chinese imports by the US.
• BOJ’s Kuroda promises more policy easing to spurt the growth rate.

Markets in the Asian domain are scaling sharply higher as risk-sensitive currencies have rebounded firmly amid a time correction in the US dollar index (DXY). The DXY is mildly offered in the Asian session after the asset printed a fresh 19-year high of 104.92 on Thursday. The asset got traction after the US economic agency reported the yearly Producer Price Index (PPI) at 11%, higher than the forecasts of 10.7%. Also, the core PPI that excludes food and energy climbed to 8.8% vs. estimates of 8.9%.

At the press time, Japan’s Nikkie225 surged 2.45%, China A50 jumps 0.74%, Hang Send added 1.86%, and India’s Nifty50 rises 0.8%.

Chinese markets are continuously gaining higher after the announcement of tariff withdrawal on Chinese imports by the US. US President Joe Biden on Tuesday announced that the administration could ease some of the tariffs imposed against Chinese imports to lower inflation. The announcement has infused an adrenaline rush into the Chinese indices.

Meanwhile, Japan’s Nikkie225 has outperformed the Asian indices on the announcement of the continuation of a prudent monetary policy by the Bank of Japan (BOJ). BOJ Governor Harihuko Kuroda doesn’t see any legitimate reason to halt stimulus to its economy. Growth rates have yet not reached their pre-pandemic levels and inflation is still lower than the targets despite soaring energy bills and food prices for the households.