Asian stocks climb higher, pound drowns as no-deal Brexit worry bites

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Asian stocks climb higher, pound drowns as no-deal Brexit worry bites

On Tuesday, the 30th of July 2019, a basket of Asian stocks opened higher, as equity investors were preparing for an expected US interest rate cut during this week’s FOMC minutes on Wednesday (July 31st), while British currency faltered further to a nearly three-year low as tensions were running high on UK congress over an inflaming possibility of a no-deal Brexit.

Gazing at the glossier side of a Sino-US trade talk, which is set to begin in a few hours, MSCI’s index of Asia-Pacific shares outside Japan added 0.15 percent on midday Asia-Pacific trading hours, while investors’ optimism remained highly supported by a likely Fed interest cut of as little as 25-basis point.

As United States is set to ease its policy in alignment with a majority of central banks across the world aimed at maintaining sustainable growth despite slowdown concerns, during midday Asian trading hours, South Korean KOSPI added 0.2 percent, while Tokyo’s Nikkei 225 advanced 0.7 percent.

Aside from that, Hong Kong’s Hang Seng added 0.45 percent to 28.231.80, mainland Shanghai’s SSE Composite index surged 0.65 percent to 2,960.18 and Bombay Stock exchange added 0.24 percent to 37,776.08 during midday Asian trading hours, while beside the North Pacific, ASX 200 soared 0.40 percent to 6,853.80 and New Zealand’s NZ 50 rose 0.27 percent to 10,887.79 on Tuesday (July 30th) market round off.

Meanwhile, referring to a much-thinner trading volume in context of a moderating risk-appetite that has almost been identical to yesterday’s (July 29th) market-vibes, a senior emerging market economist at SMBC Nikko Securities, Kota Hirayama said, “Up until now, many market participants had been on the sidelines while the markets factored in the likelihood of the Fed’s rate cut.

But with the Fed decision looming close some participants appear to be shaking off the caution and buying”.