With Federal Reserve officials confirming their dovish bias last week, and incoming Treasury Secretary Yellen set to do the same today, Asian equity markets have jumped aboard the stimulus train this morning, sending most regional markets higher. The bullish tone has been assisted by a US headline culling overnight headline risk.
Aftermarket US index futures have rallied in Asia, with S&P 500 and Dow Jones futures climbing 0.50%, while NASDAQ futures have risen 0.75%. That has propelled Asia to a strong start, with the Nikkei 225 jumping 1.45% and the KOSPI leaping 2.55% higher with the Hang Seng rallying by an impressive 2.65%.
Mainland China markets are having another circumspect day though, with investors appearing to favour Hong Kong equities at local ones' expense. The Shanghai Composite is barely changed, with the CSI 300 lower by 0.45%.
Singapore and Kuala Lumpur have risen 0.35%, with Bangkok higher by 0.95% with only Jakarta in retreat, falling 0.85% this morning. Australian markets love a stimulus narrative and have duly responded in like. The ASX 200 and All Ordinaries have rallied 1.10% today.
With Ms Yellen set to reinforce Mr Biden's stimulus narrative at hearings today, equities should maintain a favourable tailwind in the absence of any other news.