Asian stock markets showed recovery trends as tech stocks rise on wall street. In the currency market, the value of the Japanese Yen dropped after the much anticipated BOJ meeting on Friday, 28th April.
The value of Yen dropped by 0.7% after the BOJ kept its ceiling for 10 year yield bonds at 0.5%. The central bank kept its short-term policy rate at -0.1. It is believed that the Bank will adjust its yield-curve control policy in its next meeting in June. Equities rose in the Japanese market despite the bank announcements although banking sector shares lost value on the market.
The share markets in Australia and China rose following the trends on Wall Street. The South Korean markets failed to keep up with global trends and erased all the gains it made in the morning.
Amazon Inc’s warning about its cloud computing business cast a dark shadow on the best day Wall Street has had this year. Growth slowed down and tapered, US futures edged lower than before. The S&P 500 had its best day since the first week of January this year with Meta stocks showing record growth.
The Treasuries market finally found support on Thursday, 26th April after sliding down for all week. Investors kept buying the US dollar as a safe bet against inflation. The US dollar gained in strength compared to all major currencies in Asia.
After the BOJ announcement, investors are now waiting for earnings reports from Chinese lenders. This comprises China’s biggest banks like Bank of China Ltd., China Citic Bank Corp. and Industrial & Commercial Bank of China Ltd.
The biggest worry for investors continues to be the American Economy. The world’s largest economy is caught up in the worst downward spiral. The GDP is shrinking and inflation is rising. The confusing thing about the US economy right now is the lower reports of joblessness from the US labor market. A recession is generally coupled with a crash in the labor market but that has not happened yet. Analysts are speculating if the scenario will change after the recession hits.
