Asian Stock Market: Shows recovery as US banking jitters ebb, oil juggles below $74.00

• Asian stocks have demonstrated a firmer recovery as US banking jitters have eased further.
• Japanese stocks have rebounded as the BoJ has favored the continuation of easy monetary policy.
• Oil price is struggling in extending its recovery above $74.00 ahead of inventory data.

Markets in the Asian domain have shown a decent recovery as fears of a potential United States banking crisis have receded and escalating chances of a steady monetary policy by the Federal Reserve (Fed). S&P500 futures have generated significant gains in the Asian session after a choppy Tuesday. Ebbing fears of US banking shakedown are infusing confidence among the market participants. It would be worth discovering whether deposits in mid-size US banks by households are reverting or not.

At the press time, Japan’s Nikkei225 jumped 0.71%, ChinaA50 added 0.28%, Hang Seng soared 2.17%, and Nifty50 gained 0.54%.

Japanese stocks have rebounded as the Bank of Japan (BoJ) has favored for the continuation of easy monetary policy to keep inflation steady above desired levels. Ex-Bank of Japan Governor Haruhiko Kuroda remained extremely dovish for further monetary policy as the sustainable inflation target has not been met yet. He further added, “It is premature to debate an exit from easy monetary policy.” And, “More time is needed to stably and sustainably hit the price target.”

Chinese stocks have shown a decent recovery ahead of the PMIs, which will release on Friday. China’s National Bureau of Statistics (NBS) will report Manufacturing and Non-Manufacturing data, which is expected to show a decent performance as the administration is supporting growth with monetary and non-monetary measures. Deputy Director General of China’s National Development and Reform Commission of the People’s Republic of China (NDRC) said in a statement on Wednesday, “we are confident about the growth condition for this year.” He further added, “China’s potential growth rate is the same as the potential growth rate of the entire world.”

On the oil front, the oil price is struggling in extending its recovery above $74.00. The black gold has turned sideways as investors are awaiting the release of the oil inventory data by US Energy Information Administration (EIA) for the week ending March 24.

NIKKEI 225