Forex Marketz Daily Forex News – Fully Markets Update
The Asian and Pacific Rim markets are mostly higher on Tuesday. This comes after a surge on Wall Street.
Financial market traders are hoping for more accommodative monetary policy from global central banks in order to insulate their economies against the coronavirus.
In Japan, the Asian headline bourse, the Nikkei 225 is trading around the flat line after shedding early gains. The Topix index, in Tokyo, is down about 0.2 percent.
In China, the Shenzhen component was up 2.3 percent. The Shenzhen composite was up 2.334 percent.
In Hong Kong the Shanghai composite tacked on 0.32 percent.
In South Korea, the Kospi composite index is up 1.15 percent.
Elsewhere in the Asian and Pacific Rim, the Australian ASX 200 is up over one percent after the monetary policy and rate decision from the Reserve Bank of Australia (RBA). Shares of the so-called Big 4 banks were higher on the day.
Asian Traders Digest the Rate Cut from the RBA
The Reserve Bank of Australia shocked many market participants by cutting their overnight cash rate by 25 basis points to a new record low of 0.5 percent. They were expected to stand pat with their OCR and monetary policy this month.
RBA Governor Phillip low said that “the board took this decision to support the economy as it responds to the global coronavirus outbreak.”
This is the Reserve Bank of Australia’s fourth rate cut in nine months.
At 3 pm HK time the Malaysian central bank will announce their monetary policy and rate decision. Malaysia has been hit with political uncertainty after their prime minister resigned.
Traders wait on the G-7 Conference Call later Today
At 7 am EST, there is a telephone conference call led by U.S. Treasury Secretary Steven Mnuchin and U.S. Federal Reserve Chairman Jerome Powell with members of the Group of Seven industrialized nations will take place.
They are expected to discuss the economic impact from the coronavirus and market participants are expecting to hear about possible new fiscal or monetary support.
