Asia-Pacific stocks rise; India’s interest rate decision ahead
SINGAPORE — Shares in Asia-Pacific rose in Wednesday morning trade as investors look ahead to the Reserve Bank of India’s latest interest rate decision expected later today.
It Nikkei 225Japan saw an increase of 0.94%, while Topix rose 1.08%.
Japan’s economy shrank an annualized 0.5% in the first quarter, revised government data showed Wednesday — an improvement over the initial estimate of a 1% contraction.
Later on Wednesday, India’s Reserve Bank of India will make its latest interest rate announcement. The Reserve Bank of Australia has also announced a similar decision. surprise 50 basis points rate hike on Tuesday.
Vishnu Varathan, Mizuho Bank’s vice president of finance wrote Wednesday that inflation had accelerated to 7.8% in April. “There is no doubt that the RBI would continue tightening at its scheduled meeting,” he said.
He added that the bank’s base case is for a hike of 35 basis points to lift the repo rate to 4.75% — that would take it to a cumulative 75 basis points hike since May, he said. Refers to the interest rate the central bank lends commercial banks.
Overnight stateside, the S&P 500 climbed 0.95% to 4,160.68. Dow Jones Industrial Average climbed 0.8% or 264.36 to 33.180.14. The Nasdaq Composite gained 0.94%, to 12,175.23.
It World Bank on Tuesday cut its global growth forecastTo 2.9% by 2022, and warns of an economic collapse resembling the 1970s.
It U.S. dollar indexAfter a previous low of 102.387, indices of the greenback against its peers were at 102.519.