TOKYO: Asian stock markets rallied on Thursday, buoyed by Wall Street’s surge to all-time peaks overnight after a milder U.S. inflation report raised expectations the Federal Reserve will deliver two interest rate cuts this year.
The dollar remained on the back foot, sagging to fresh multi-week lows against peers including the euro and sterling.
U.S. Treasury yields extended their retreat in Tokyo trading, sinking to six-week troughs. That helped the beaten-down yen to continue its recovery, even as data showed the Japanese economy contracted more than expected in the first quarter.
Gold marched back toward record levels and crude oil added to gains after rebounding strongly overnight from a two-month trough.
Asia Wall St Rally surges as markets respond to positive momentum from Wall Street. Investors exhibit confidence amid signs of inflation relief, causing the dollar to weaken against regional currencies. Additionally, the rally signifies growing optimism in the Asian financial markets.
The Asia Wall St Rally reflects a broader trend of market optimism across the region. Asian stocks experience gains as investors anticipate sustained economic recovery. Furthermore, the rally underscores the resilience of Asian markets amid global economic challenges.
The weakening dollar in response to the Asia Wall St Rally prompts shifts in global currency markets. Investors diversify portfolios amidst expectations of prolonged inflation relief. Furthermore, the rally reinforces Asia’s position as a key player in the global economic recovery.
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