In a recent turn of events, Asian Markets rose sharply after the Nekkei 225 witnessed a rise of 2% ahead of the three central banks’ interest rate decisions in the region. The three central banks, the Bank of Korea, the Reserve Bank of New Zealand, and the Reserve Bank of India, will likely release their interest rates this week.
According to the economists, the Bank of Korea and the Reserve Bank Of New Zealand are likely to cut interest rates, decreasing their interest rates to 3.25% and 5.25%, respectively. However, they are unsure about the Reserve Bank Of India’s position. Following the news, various institutional investors, including Saudi Arabia’s PIF fund, became bullish on the region’s share market.
Changes In the Stock Market
The Japanese stock market witnessed a maximum rise of 2%, driven by financial and consumer cyclical stocks, with Mizuho Financial Group and Mitsubishi UFJ Financial Group among the leading gainers on the index. Moreover, the share price of video game company Nintendo climbed over 3.8% after the Saudi Sovereign Wealth Fund announced its plan to invest in the company and other Japanese gaming counterparts.
However, this is the second time the Nikkei index has grown since the beginning of October. Earlier in the month, Asian markets witnessed mixed reactions from investors amid the Iran-Israel crisis, in which Nikkei 225 inched by 0.41%.
Further, the yen strengthened by 0.16%, trading at 148.46 after reaching its lowest point two months earlier in the session. Meanwhile, the dollar gained following a robust U.S. jobs report on Friday, which also lowered expectations for a potential 50-basis-point rate cut by the Federal Reserve.
