Powell could shoot the Fed doves down

Good news is that Asian stocks entered bull market. Bad news is that the Federal Reserve (Fed) President Jerome Powell could hammer the post-NFP stock rally in US stocks. Sentiment is mixed and investors are tense before Powell’s speech, and Thursday’s US inflation data.

Asia enters bull market

Asian stocks entered the bull market, as China’s post-covid reopening, the weakening US dollar, and stimulus from the Chinese government and central bank supported a sustained rally in Chinese, and the Asian stocks since last October. As a result, the MSCI Asia Pacific index gained more than 20% since the October dip.

Plus, China announced that it will continue supporting growth with unheard amounts of stimulus packages. It is on the news that the Chinee officials are discussing a record 3.8 trillion yuan quota for local government bond issuance this year – it equals $561 billion US dollars.

Many investors expect the Asian equities to diverge positively from their Western peers through this year.