Asian Stock Market: Traces positive Wall Street, Nikkie225 outperforms

Nikkie225 outperforms ahead of Fed Powells speech.

Asian markets are shrugging off the aggressive hawkish stance from the Fed.

Markets in the Asian domain part ways with the Chinese stocks as the latter has shown subdued performance in the Tokyo session while other markets are performing stronger.

At the press time, Hang Seng surges 1.58%, Nifty 50 jumps 0.43% while Japans Nikkei225 outperforms by gaining 2.58%. Meanwhile, the China A50 is trading flat to negative.

It is worth noting that the global equities have shrugged off the pessimism due to the adaptation of an aggressive hawkish stance by the Federal Reserve (Fed) to corner the inflation. Usually, central banks start increasing interest rates when it finds inflation surging rooftops. Also, central banks stop providing helicopter money to the economy when they find that economy is strong enough and is able to perform itself without any material support. Asian markets are getting mature these days and are taking the announcement of six more interest rate hikes in a positive way. Therefore, a sense of optimism in the Asian markets has been witnessed from a spree of upticks in the last few trading sessions.

Meanwhile, the 10-year US Treasury yields are auctioning near 2.42% amid the expectation of a 50 basis point (bps) rate hike in Mays monetary policy.

Going forward, the speech from Fed Chair Jerome Powell will be the major event on Wednesday. It is highly likely that a roadmap of rate hikes will be dictated as six more rate hikes are to be allocated by the end of 2022. Apart from that the European Union (EU) leaders summit and NATO meeting will hold significant importance.