Asian Stock Market: Trades positive as DXY loses strength, oil sustains below $120.00

• Asian indices are trading positive as the DXY is offered at around 102.69.
• Indian bourses are cautious ahead of the monetary policy by the RBI.
• Oil prices are rising on supply constraints and demand recovery as Shanghai has re-opened.

Markets in the Asian domain are trading positive as the bullish momentum in the US dollar index (DXY) displayed at the open has started fading now. The DXY has faced barricades while attempting to re-test its previous week’s high at 102.73, however, a bearish reversal is not into consideration as investors are expected to remain cautious over the release of the US Consumer Price Index (CPI), which is due on Friday.

At the press time, Japan’s Nikkei225 jumped 0.60%, China A50 urged 1.15%, Hang Seng added 0.15% while Nifty50 slipped almost 1%.

Indian bourses are expected to behave extremely rough this week as the Reserve bank of India (RBI) will dictate the monetary policy on Wednesday. A conservative stance is expected by the market participants as rising oil and commodity prices are impacting Indian households. As per the market consensus, the RBI will increase its interest rates by 35-50 basis points (bps).

The US inflation is expected to land at 8.2% on annual basis. A constant above 8% figure despite the continuous policy tightening by the Federal Reserve (Fed) is worsening the inflation situation.

Meanwhile, oil prices are oscillating around $119.00 after a corrective move. Tight supply due to prohibition of oil imports from Russia by the European Union and demand recovery on Shanghai’s reopening are supporting the oil prices.