Reuters
Marketmind: Soft landings and re-openings
Asian markets are set to open the week with a spring in their step on Monday, buoyed by Wall Street’s surge on Friday and rising hopes of a soft U.S. landing, and optimism surrounding China’s re-opening after its ‘zero-Covid’ policy came to an end this weekend. A ‘Goldilocks’ U.S. employment report on Friday was taken by investors as a sign that the Fed might win its anti-inflation battle without doing too much damage to the economy – U.S. and global stocks, risky assets and bonds all soared, which is likely to set the tone in Asia on Monday. A relatively benign U.S. backdrop – economic activity and inflation cooling enough to allow the Fed to end its hiking cycle soon, and maybe even reverse it later this year – is enough to whet investors’ risk appetite.