(Bloomberg) — Early trading in Asian stocks is off to a positive start, with hopes of a potential rate cut strengthened by a more moderate reading of the Federal Reserve’s preferred inflation measure.
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Australia and Japan saw an increase in equities at the opening on Monday, while futures suggest gains in Hong Kong as well. The outcome of elections in key emerging markets will play a significant role, especially with positive indications from exit polls in India favoring Prime Minister Narendra Modi’s party. Meanwhile, the Mexican peso is on the rise with ongoing polls.
The recent rise in Asian shares follows a 1.5% increase in May, supported by signs of stabilization in China’s economy and a weaker dollar. However, political tensions, such as those in the Middle East and the upcoming US election, could introduce volatility, as noted by AMP Ltd.
“We anticipate further growth in the stock market this year as disinflation persists, central banks move towards interest rate cuts, and the threat of a recession diminishes,”
2024-06-02 19:10:54
Link from finance.yahoo.com