Asian shares made a positive market splash on Tuesday when the MSCI’s (Morgan Stanley Capital International) most comprehensive index of Asia-Pacific shares increased by 0.91% after a momentary hover around $510.42 – the highest they have been since September 2018. These stocks also increased by 7% for the month, making it the most prominent monthly gain since January.
Asian stocks experience 2-month high in face of weaker dollar
On Monday, the Japanese Nikkei settled at a 0.15% increase after riding crests not experienced since 1990. As this index is up by an estimated 28% so far this year, it is the strongest performer in the Asian stock market.
Similarly, the CSI300, China’s blue-chip index, rose by 0.66% and the Hong Kong Hang Seng climbed by 1.25%, aided by the lifting of Sino tensions. Analysts attribute this strong rally performance to the weaker dollar and expectations that the US Federal Reserve may take a break from the constant interest rate hikes.
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Records show that, on the whole, stock markets bounced back in November given possible inflation rate abatements and anticipated rate cuts as soon as March 2024. Investors staked their bets on a US Federal Reserve decision to keep interest rates unchanged for December.
The Nasdaq also wrapped up Monday on a 1% high as heavyweight Microsoft (MSFT) led a rally after hiring OpenAI’s ousted Sam Altman to join its research team. Tech traders are closely watching these developments as ups for Microsoft may mean downs for OpenAI following employee dissatisfaction with terminating Altman as CEO.
