Most Asian stocks rose Thursday after China again indicated looser monetary policy is on the way and bond traders dialed back aggressive bets on Federal Reserve interest-rate hikes.
An Asia-Pacific equity gauge climbed a second day as Japan and China pushed higher. U.S. and European equity futures were steady following a tech-sector rally that helped Wall Street snap a three-day drop.
China is expected to cut a key policy interest rate for the second time this year on Friday and reduce the reserve requirement ratio soon — the nation’s cabinet has strongly signaled the latter as Covid lockdowns sap the economy.
“We have actually turned cautiously optimistic on the Chinese equity market in April already,” Stefanie Holtze-Jen, Asia-Pacific chief investment officer at Deutsche Bank AG in Singapore, said on Bloomberg Television.
“We perceived the communication from the government as the line in the sand.” Outside of China, monetary settings continue to tighten in the campaign to curb the cost of living.
South Korea raised its key interest rate and Singapore further tightened policy, spurring advances in their currencies. Shorter maturity Treasuries extended a climb that suggests investors are rethinking just how far the Fed will hike rates.
