Asian Stock Market: Registers modest gains as risk-off eases, Caixin Manufacturing PMI hogs limelight

• Asian indices have rebounded comprehensively as investors shrug off Fed rate hike fears.
• Chinese stocks will remain volatile ahead of the Caixin Manufacturing PMI data.
• BoJ Himino has also considered the easy monetary policy as appropriate till the central bank achieves 2% inflation confidently.

Markets in the Asian domain have shown an overall recovery as fears of more rates by the Federal Reserve (Fed) to achieve price stability amid rising consumer spending in the United States has faded. A rebound in the risk appetite theme has infused some strength into the risk-sensitive assets. The US Dollar Index (DXY) has rebounded after a perpendicular correction to near 104.20. The recovery move in the USD Index looks fragile as investors’ risk-taking ability is improving gradually.

At the press time, Japan’s Nikkei225 added 0.17%, ChinaA50 gained 0.11%, Hang Seng jumped 0.46%, and Nifty50 recovered 0.20%.

A sheer caution is expected for Chinese stocks as investors are awaiting the release of the Caixin Manufacturing PMI, which is scheduled for Wednesday. The street is anticipating a power-pack recovery in the Chinese economy after remaining locked for three years to contain the spread of Covid-19. Chinese administration is pumping stimulus to trigger economic recovery. Also, the People’s Bank of China (PBoC) has promised an expansionary monetary policy to revive growth.

Japanese equities seem directionless amid dovish stances from Bank of Japan (BoJ) policymakers. After dovish remarks from BoJ Governor Nominee Kazuo Ueda, BoJ Deputy Governor Ryozo Himino has also considered the easy monetary policy as appropriate for now. However, BoJ Himino has also cited an optimal time will come when the BoJ would exit easy policy, which will be good for both the public and banks.

The oil price is on the verge of reclaiming the 76.00 resistance as investors are worried that sheer supply cuts from Russia will trigger the demand-supply equilibrium. The black gold will remain in action as the US American Petroleum Institute (API) will release the oil inventories data for the week ending February 24.