Asian Markets Rise as Fed Rate Hike Delay Eyed

Markets in Asia were largely in positive territory on Tuesday following a strong finish on Wall Street.
Investors continue to see last week’s US jobs figures as a sign the US Federal Reserve will not raise its rates until December at the earliest.

In Japan, the benchmark Nikkei 225 index was up 1.58% at 18,290.79 as it looks to its fifth consecutive day of rallies.

Australia’s S&P/ASX 200 benchmark was up 0.92% in morning trade at 5,197.80.

Investors shrugged off news that Australia’s trade deficit rose unexpectedly in August to 3.09bn Australian dollars ($2.18bn; £1.44bn) against forecasts for a deficit of A$2.55bn.

The Reserve Bank of Australia (RBA) meets later on Tuesday, but market analyst Evan Lucas said the bank was unlikely to make any significant statements this week or announce a rate cut until December.
“We think the [bank’s] statement will be even duller than the rates release [today] as the RBA will not want to give anything away,” he said in a note.

“However, there is no escaping the fact that the market is building a case for a December cut, with the interbank market now pricing in a 60% chance that Australia will get a 25 basis point cut Christmas bonus on 1 December.”

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza