Asian share markets have rediscovered their appetite for risk after US Fed chair Jerome Powell signalled a slowdown in the bank’s aggressive rate hikes.
Asian stocks jump after Powell speech
Asian equities have jumped as investors poured into risky assets after Federal Reserve chair Jerome Powell opened the door to a slowdown in the pace of monetary tightening.
In an eagerly-awaited speech, Powell said the central bank could scale back the pace of its interest rate hikes “as soon as December”, but cautioned that the fight against inflation was far from over.
Powell’s comments at the Brookings Institution in Washington sent Wall Street equities soaring, while the US dollar and Treasury yields fell.
MSCI’s broadest index of Asia-Pacific shares outside Japan jumped two per cent in early Asian trade on Thursday.