Asian Markets Show Recovery Amid US Banking Relief and Fed Policy Optimism

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Asian Markets Show Recovery Amid US Banking Relief and Fed Policy Optimism

Asian markets have demonstrated a positive recovery as fears of a potential US banking crisis dissipate, and chances of a stable monetary policy by the Federal Reserve increase. As of press time, Japan’s Nikkei225 rose 0.71%, ChinaA50 grew 0.28%, Hang Seng increased 2.17%, and Nifty50 gained 0.54%. S&P500 futures have shown significant gains during the Asian session, following a choppy Tuesday. The ebbing fears of a US banking shakedown have provided market participants with increased confidence, but it is still unclear whether deposits in mid-size US banks by households are reverting or not.

The Bank of Japan (BoJ) has favored continuing easy monetary policy to maintain inflation steady above desired levels, leading to a rebound in Japanese stocks. Ex-Bank of Japan Governor Haruhiko Kuroda maintained a dovish stance for further monetary policy since the sustainable inflation target has not yet been met. Kuroda stated, "More time is needed to stably and sustainably hit the price target," adding, "it is premature to debate an exit from easy monetary policy."

Chinese stocks have also demonstrated a steady recovery, anticipating the PMI release scheduled for Friday. China’s National Bureau of Statistics (NBS) will report Manufacturing and Non-Manufacturing data, which is expected to perform decently as the administration supports growth with monetary and non-monetary measures. The Deputy Director General of China's National Development and Reform Commission of the People's Republic of China (NDRC) stated on Wednesday that "China's potential growth rate is the same as the potential growth rate of the entire world," indicating confidence in this year's growth condition.

Oil prices, on the other hand, have been struggling to maintain their recovery above $74.00, with investors awaiting the release of the US Energy Information Administration's oil inventory data for the week ending March 24. As a result, black gold has turned sideways.

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