Asia stocks rally higher moved by a dramatic U-turn in British fiscal policy brightening investor sentiment while the US dollar took a breather in more than a week.
This respite comes as British Finance Minister Jeremy Hunt took swift action by reversing all of Prime Minister Liz Truss economic that had led to the political maelstrom fuelled by market turmoil, the pound sinking to its lowest, and the Bank of England having to intervene.
Morgan Stanley analysts say the u-turn is likely to have significant implications for the BoE as its economist will look at revising the rate hike to .75bps from 100 scheduled earlier for November. Hunt’s move left government bonds, currency, and shares soaring and even lifting US stocks.
Over in Malaysia, the KLSE is performing higher at 0.36% to 1391 in line with regional trends, Japan’s Nikkei is also up 0.6% while the S&P 500 Futures and Nasdaq are both up 0.8%.
China however remained flat, edging up a mere 0.12% as the Chinese Party Congress remains in session for the week, on the currency front the US dollar retreated against most currencies with the sterling subdued after gaining 1.6% the previous day.