US stocks rallied and Asian markets gained after Fed chair Powell’s dovish pivot at Jackson Hole. The USD slides, while gold recovers its footing.
Risk-on in Asia equities, fuelled by Fed Chair Powell’s dovish speech
In today’s Asia session, Asia Pacific stock markets have taken the bullish cue from last Friday’s bullish reversal seen on the major US stock indices after Fed Chair Powell’s speech at the annual Jackson Hole Symposium. He switched to a dovish stance from a wait-and-see approach previously, citing softness in the US labour market that outweighed the persistent inflation risk from tariffs.
Hong Kong’s Hang Seng Index jumped by 1.7% to trade at a four-year high, reinforced by China’s easing of property home buying rules in Shanghai that allow eligible residents, including those from outside Shanghai, to purchase an unlimited number of homes in the outer suburbs. Japan’s Nikkei 225 and Singapore’s Straits Times Index added modest gains of 0.3% and 0.2% respectively.
The US S&P 500 and Nasdaq 100 snapped a four-day losing streak on Friday, gaining 1.5%. The Dow Jones Industrial Average outperformed with a 1.9% rise, while the small-cap Russell 2000 surged 3.9%. The rebound signalled a broadening of bullish momentum beyond mega-cap technology into other sectors of the US stock market.
In the FX market today, the US dollar continued to extend its slide from last Friday’s intraday bearish reversal seen on the US Dollar Index. The Japanese yen and Swiss franc strengthened by 0.3% against the greenback at the time of writing, without any relevant catalysts or economic data in today’s Asia session.
A softer US dollar has allowed the yellow metal to gain a firmer footing as Gold (XAU/USD) managed to trade back above its 20-day and 50-day moving averages, now acting as a key intermediate support zone at US$3,347/3,352 within a medium-term sideways range configuration.
Our YouTube video above contains the latest intraday technical analysis on the latest intraday technical analysis on US Wall Street 30, US Nas 100, US SPX 500, Hong Kong 33, Japan 225, Germany 30, EUR/USD, GBP/USD, AUD/USD, USD/JPY, Gold (XAU/USD), and West Texas Oil.
