Stocks strengthen after Australian central bank holds rates


Hong Kong, July 4 (BNA): Asian stocks rose Tuesday afternoon after Australia’s central bank kept interest rates steady, helping to assuage investor concerns about excessive policy tightening by central banks.

MSCI’s broadest index of Asia-Pacific stocks outside Japan rose 0.3% by noon Tuesday, making up for slight losses in the morning, Reuters reported.

Australian shares rose 0.5%. The Reserve Bank of Australia (RBA) kept its cash rate at 4.10%, saying it wanted more time to assess the impact of previous increases. Thematic Research in Asia and the Pacific in Natixis.

“Central banks, especially those in the Asia-Pacific region, have no choice but to rebalance their hawkish stance,” he said.

He said that this less hawkish stance, along with signs that China is pushing to support the yuan, is supporting the market.

Matt Simpson, chief market analyst at City Index, said the pause in rate hikes by the RBA “came as a relief for the equity bulls”.

“The ASX seems determined to take advantage of 7,300 this week. But it may need to look for the global sentiment to recover to hold on to the recent gains,” he added.

Japan’s Nikkei Average (.N225) fell 0.9% as investors exited some bullish positions after the benchmark closed at a 33-year high in the previous session.

Mainland China’s Index (.SSEC) was flat and Hong Kong’s Hang Seng Index (.HIS) rose 0.6%, led by technology companies.

US S&P 500 E-mini stock futures were flat in Asian trade. Wall Street stock indices ended Monday’s brief session slightly higher, along with Treasury yields.

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Most of Wall Street was closed for the US Independence Day holiday on Tuesday.

In early European trades, the region-wide Euro Stoxx 50 futures and German DAX futures were up around 0.2%, while FTSE futures were almost flat.

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