Fed, China move brings relief for Asian Markets

| Updated: July 29, 2021 8:24 am

Stock markets are slowly getting back to normalcy after Federal Reserve assured that the rise in interest rates is way away while the Chinese authorities also tried to soothe fears.

Hang Seng in Hong Kong opened 2% higher after three days of declines. The stock markets in the mainland also recoded gains, with the Shanghai composite up more than 1% and the Shenzhen component surging 2.08%. In Japan, the Nikkei 225 advanced 0.51% while the Topix index gained 0.26%. South Korea’s Kospi and S&P/ASX 200 in Australia also climbed.

On Wednesday, the US markets closed in the red but managed to recover most of their losses during the day.

It was reported that China’s securities regulator held a phone call with banks to soothe fears about the recent selloff also put some support behind riskier currencies overnight, analysts said.

The stock market is also getting support from the Federal Reserve’s decision. In its decision, the US central bank kept the interest rate near zero. In a press conference, Jerome Powell, the Fed chair also assured the markets that interest rates rise is ‘way away’.  Lower interest rates make riskier assets like stocks more attractive.

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