Indian Shares Seen Opening Higher As Fed Rate Hike Concerns Ease
(RTTNews) - Indian shares look set to open higher on Monday, tracking firm cues from global markets as investors trimmed bets on an aggressive policy tightening cycle by the U.S. Federal Reserve.
Asian shares rose on Monday as reduced inflation fears lowered the chances of another Federal Reserve interest rate increase. Japan's Nikkei 225 climbed 2.5% to 70,037.61, reaching a three-month high. Australia's S&P/ASX 200 increased by 0.1% to 8,691.90, while Hong Kong's Hang Seng stayed flat at 23,971.55. Trading was halted in Shanghai and South Korea for national holidays.
Interest in tech companies related to artificial intelligence sparked buying. Japanese stocks performed well, with Tokyo Electron up 5.5% and SoftBank Group's shares rising 3.3%. Taiwan Semiconductor Manufacturing Co. (TSMC) gained 2.6%. The U.S. added 29,000 jobs last month, which was less than anticipated and may lessen the likelihood of a Federal Reserve rate hike.
The Federal Reserve recently raised its interest rate for the first time in three years to combat rising consumer prices. This helped lower the yield on the 10-year Treasury bond below 5.17%. U.S. crude oil prices fell, while Brent crude also declined. The U.S. dollar strengthened against the Japanese yen and the euro.
Written by urgent.news from Winnipeg Free Press's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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