Asian Stocks Get US Tailwind From Powell Testimony, Eye Day Two
ASIAN STOCKS TALKING POINTS:
- Asian stocks rose across the board
- The US Dollar hit six-month highs against the Yen and the bulls don’t look finished yet
- Jerome Powell will speak again Wednesday
The DailyFX Third-Quarter Fundamental and Technical Forecasts are out now,
Asian stocks rose very broadly Wednesday, importing the feel-good factor from the US where markets had been given some zing by upbeat comments in Congress from Federal Reserve Chair Jerome Powell.
He said that the US was growing ‘considerably stronger’ economically, and that so far trade tensions had not caused the Fed to veer from its now mature, gradual monetary tightening course. The Nikkei 225 led Asian equity upward on the coattails of the US, rising 0.7% in the middle of the Tokyo afternoon. Australia’s ASX was up by a similar amount as its close loomed, with Shanghai, Hong Kong and Seoul also in the green.
The US Dollar unsurprisingly also benefitted from Mr. Powell’s optimism, with USD/JPY hitting a six month peak as risk appetite revived. Technically speaking the pair is now approaching 2018’s January peaks which themselves guard the more significant highs of November, 2017.
Crude oil prices slipped thanks to news Tuesday of a surprise jump in US stockpiles. Gold prices were steady through the Asian session, despite hitting one year lows earlier as the firmer US Dollar took a toll. However, Senior DailyFX Currency Stratregist Ilya Spivak thinks that the oldest haven could well have further to fall yet.
Still to come Wednesday are Consumer Price Index data from both the Eurozone and the UK. US mortgage application and housing start numbers are also coming. However Mr. Powell's second visit to Capitol Hill will be the main event for all markets.
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--- Written by David Cottle, DailyFX Research
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.