Commodity Shares Rally Drives Asia Higher, China Bucks Trend
The stocks on the Asian bourses attempt a tepid-bounce so far this session, as the sentiment remains buoyed by a renewed rally in the commodity shares after markets cheered the news that the commodities’ prices rose by more than 20% since Jan to enter into a so-called bull market.
Moreover, the upbeat momentum in the Asian markets can be also attributed to Fed Yellen’s confidence in the ongoing US economic recovery, signalling that Fed remains on the track to raise rates gradually this year.
However, the Chinese equities buck the trend and edged lower, while the Australian stocks led the Asian advance ahead of the RBA cash rate decision due later this session.
RBA in focus
The Japanese benchmark index, the Nikkei 225 now trades +0.36% around 16,640 levels as USD/JPY jolted +0.20% higher at 107.80 amid improved risk sentiment. Australia’s ASX 200 index gains +0.53% to 5,388 levels as all eyes remain on the RBA decision.
While the Chinese equities trade marginally lower, with the benchmark Shanghai Composite index now dropping -0.23%, the CSI300 index trades -0.20% at 3,170 points. Hong Kong Hang Seng advances +0.66%.