Asian Stock Market: Modestly positive on positive cues from Wall Street, DXY flat, oil above $110.00

• Asian indices are following the footprints of the positive closing of Wall Street.
• The DXY is trading subdued ahead of the US GDP, which is seen stabled at -1.4%.
• Oil prices are expected to scale higher amid rising uncertainty over Europe’s embargo on Russian oil.

Markets in the Asian domain are auctioning positively, following the positive cues from Wall Street on Wednesday. The US indices recovered sharply in the previous trading session as uncertainty over the release of the Federal Open Market Committee (FOMC) faded. FOMC minutes were extremely hawkish as all Federal Reserve (Fed) policymakers were advocating for a 50 basis point (bps) interest rate hike along with hawkish guidance. However, investors ignored the hawkish tone and pumped liquidity into the US equities.

At the press time, Japan’s Nikkie225 added 0.16%, SZSE Component gained 0.90%, and India’s Nifty50 added 0.26%, however, Hang Sang eased 0.16%.

Meanwhile, the US dollar index (DXY) is displaying back and forth moves in the Asian session. The DXY is trading in a narrow range of 101.94-102.24 and is expected to deliver a downside break amid positive market sentiment. In today’s session, investors are awaiting the release of the US Gross Domestic Product (GDP). A preliminary estimate for the annual GDP is -1.4%, similar to the previous figure.

On the oil front, the oil prices are consolidating in a minor range but are expected to move upside down sharply as supply worries could worsen further on an embargo on Russian oil by the European Union (EU). The EU is still considering the prohibition of the Russian oil imports as Hungary is opposing the decision amid its higher dependency on oil imports from Moscow. However, the odds are still favoring a ban on oil from Russia.