Asian shares rallied on Monday as hopes for less aggressive US rate hikes and the opening of China’s borders bolstered the outlook for the global economy.
The Dubai Financial Market (DFM) opened 2.41 percent at 3304 points, while the Abu Dhabi Securities Exchange (ADX) also opened in the green, trading 0.047 percent higher in the early morning trading hours.
Indian equity indices opened strong, with the Bombay Stock Exchange (BSE) Sensex trading at 870 points higher at 60,771 and Nifty50 trading at 18,104, up by 246 points, in the morning trading hours.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.5 percent to a five-month top, with South Korean shares gaining 2.1 percent.
Chinese blue chips added 0.4 percent, while Hong Kong shares climbed 1.4 percent in Monday morning trading hours.
Market analysts said with US key indicators hinting at easing of Fed rate hikes, investor focus could now turn to corporate health as the earnings season kicks off from today with IT major TCS results.
Market analysts said the US economic data released on Friday was significant from the global market perspective.
“All data point to a strong but cooling US economy which indicates the rising possibility of a soft landing for the US economy,” an investment with a Kochi-based financial services firm said.’
Global markets
Wall Street’s main indexes gained more than two percent on Friday after December payrolls expanded more than expected.
Slowing wage increases and services activity also led to easing of worries about the Federal Reserve’s interest rate hiking path.
The Dow Jones Industrial Average rose 700.53 points – or 2.13 percent – to 33,630.61, while the S&P 500 gained 86.98 points at 3,895.08 and the Nasdaq Composite added 264.05 points, or 2.56 percent, at 10,569.29.
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