Asian shares rise on signs of US Fed slowdown, Nikkei at 2-month highs

Overnight, Wall Street had edged higher after minutes from the Fed meeting earlier this month indicated several officials backed the need to moderate the pace of rate hikes, even as some underscored the need for a higher terminal rate. The S&P 500 closed at a two-month high Wednesday. US markets are closed for the Thanksgiving holiday today.

US stock futures are higher too. S&P 500 futures rose 0.2% while Nasdaq 100 futures rose 0.3%.

In China, property shares jumped today, after the country’s biggest commercial banks agreed to provide billions of dollars in credit lines to cash-strapped developers, adding to recent regulatory support measures to lift the sector out of a deep slump. Stock of China Vanke, Country Garden, China Overseas Land, China Resources Land, CIFI Holdings and Greentown China rose between 3.4% and 11.1% in Hong Kong.

A gauge tracking the sector, the Hang Seng Mainland Property Index, rose 5.3%.

Indian stock markets are also set to open higher today. SGX Nifty futures were up at 18,329.

“As long as Nifty holds the support level of 18157, the immediate goalpost for the index is seen at its all-time-high at 18605 mark and then aggressive targets at the psychological 19000 mark,” said Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities Ltd.

On Wednesday, NSE Nifty 50 index advanced 0.13% to 18,267.25. Indian markets may also get support from falling oil prices after Group of Seven (G7) nations considered a price cap on Russian oil above the current market level. Brent crude futures plunged more than 3% on Wednesday on news that the planned price cap could be above the current market level.

“Benchmark Indices are expected to open on a positive note today as suggested by trends on SGX Nifty. All the US and European markets closed in green yesterday after the Fed meeting minutes indicated that interest rate hike may slow down. Asian markets are also trading in green after expectations of smaller rate hikes from Fed,” said Mohit Nigam, Fund Manager and Head – PMS, Hem Securities.

“We believe that IT stocks can be a good buy for both small and medium term gains led by good corporate earnings and expectations of slowing pace of interest rate hike by Fed. Investors can also accumulate auto shares as good demand and RM prices cooling off may lead to rise in these stocks. On the technical front, immediate support and resistance in Nifty 50 are 18200 and 18400 respectively. Bank Nifty immediate support and resistance are 42000 and 43250 respectively,” he added. 

The Indian rupee is also expected to open higher against the US currency after the dollar index declined more than 1% on Wednesday to below 106 and Treasury yields fell on the back of the U.S. data and the Fed minutes. (With Agency Inputs)