Asian stocks gained sharply on Thursday after traders priced in Beijing openness to support the economy and financial markets along with Federal Reserve’s view, a robust economy being able to weather off high inflation is underway.
Beijing vowed to ease regulatory crackdown and pledged support for companies in both tech and real estate sector. However, investors are still questioning on the sustainability of the rebound, despite promise of the officials. Most investors are willing to see easing of the COVID-19 curbs in the tech and real estate sectors before being convinced of an end to the broad based market selloff.
The Fed raise interest rate by a quarter percentage points and provided guidance on rate hike in all six remaining meeting this year. It has also provided guidance rate at 2.8% by the end of 2023. The federal agency also noted it would begin to shrink $8.9 trillion balance sheet at a “coming meeting”, without giving particular details.
The CSI300, HSI, SET, KOSPI and TOPIX is closed on optimism inching up by 1.96%, 7.04%, 1.33%, 0.83% and 2.47% respectively.
Futures contracts on the tech-heavy Nasdaq 100 inched down by 0.64% while those on the S%P 500 down by 0.55%.
Crude oil gained after reports of International Energy Agency predicted that the Russian output would drop by about a quarter next month. The WTI trading around $99 while Brent is trading around $103.
