Reflecting the Wall Street market, Asian stocks started brilliantly as the US dollar weakened to a 5 -week low.
The MSCI broad index of Asia-Pacific stocks outside Japan rose 0.3% to a 3-week high while Japan’s Nikkei hit 1.3% and South Korea’s Kospi climbed 0.9%.
Nasdaq Composite futures added 0.4% after hitting 6.8% last week while S&P 500 futures jumped 0.3% following a 6.6% rally last week.
Meanwhile, news of the continued suspension of operations in Shanghai has clouded market sentiment.
In addition, investors are also seen considering the prospect of easing the tightening of US monetary policy after sharp increases in June and July.
According to NAB’s head of FX strategy, Ray Attrill, the Federal Reserve (Fed) is expected to raise 50 basis points at its June and July meetings while the remaining 3 meetings will see an increase of 25 basis points each.
That string, those dovish expectations have made treasury yields bounce with the 10 -year yield note at 2.74%, down from a high of 3.203% recorded during May 9th.
This also had a steady impact on the dollar safe-haven where the Greenback index slipped 1.3% last week to a 5-week low of 101.43 before rising to 101.68.
The Japanese yen was also seen receiving a similar fate when it fell 126.37 last week, but rose slightly to 127.25 against the dollar.
As for the Euro, the European Central Bank's (ECB) hawkish comments on a rate hike as early as July have pushed it to $ 1.0732 after gaining 1.6% last week at $ 1.0764.
On the other hand, gold traded at $ 1,850 per ounce as a result of a decline in the value of the US dollar.
