Asian Stocks, Oil Price Rally Amid Fed Rate Hike Uncertainty

Asian stock markets climbed higher as they extended a global rally on Monday morning as analysts expect the Federal Reserve to pause its rate hike this month. The price of crude oil also jumped after Saudi Arabia pledged big output cuts.

Asian markets extend global rally

Asian markets climbed higher following a rally on Wall Street as the market expects a pause in rate hikes by the US Federal Reserve after the mixed US jobs report and the resolution of the debt-ceiling issue. US President Joe Biden signed a bill on Saturday to raise the debt limit, averting a global economic disaster. US markets are also expected to climb even higher when they open Monday morning.

Indian markets are also expected to continue to rally. However, investors will watch out for the string of central bank meetings for more macro signals starting with Australia and India on Tuesday and Thursday, respectively. These come before the FOMC meeting next week.

Japan’s Nikkei 225 and TOPIX performed best this morning as they rose 1.9% and 1.3%, regaining their highest levels in 33 years.

Bitcoin continues to trade sideways

Despite optimism among stock markets around the world, the leading cryptocurrency bitcoin continued to trade below $27,000. Over the years bitcoin has become investors’ best bet against inflation. As reported earlier, the Consumer Price Index in the U.S. reached 4.9% in April 2023, exceeding expectations. Meanwhile in the E.U., inflation is at around 7%. These elevated figures are expected to remain persistent throughout the year, making inflation the main issue for investors. On the heels of inflation, bitcoin could surge to higher levels as more investors see the cryptocurrency as a safe haven.

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Jai Pratap is a Crypto and Blockchain enthusiast with over three years of working experience with different major media houses. His current role at CoinGape includes creating high-impact web stories, cover breaking news, and write editorials. When not working, you’ll find him reading Russian literature or watching some Swedish movie.

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