Asian markets primed for a mixed open on Wednesday following a late rally in the U.S. shares in a volatile session after Federal Reserve Chair Jerome Powell rebuffed an opportunity to tamp down investor optimism.
The S&P 500 rose more than 1%, reversing a 0.6% drop. The tech-heavy Nasdaq 100 outperformed major benchmarks, climbing more than 2%.
Powell’s sober comments echoed those made after last week’s FOMC meeting, soothing traders who were expecting the Fed chief to push back on the loosening of financial conditions and Friday’s bumper jobs report. Powell highlighted that disinflation has begun, and that further hikes will likely be needed if the jobs market remains strong.
At 6:05 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was up 0.27% at 17,777.5.
Meanwhile, the yield on 10-year Treasuries advanced to 3.66%. Crude prices were above $83-mark, Bitcoin hovered around $23,000-level.
The Indian benchmark indices declined in trade on Tuesday after opening with slim gains amid volatility.
Rupee closed higher against the U.S. dollar even as traders awaited the monetary policy decision, scheduled today.
Overseas investors in Indian equities remained net sellers for the fourth day in a row on Tuesday. Foreign portfolio investors offloaded equities worth Rs 2,559.96 crore, while domestic institutional investors mopped up stocks worth Rs 639.82 crore for the 12th day in a row.