“The dovish influence from the Fed is going to continue to resonate over in Asia. That’s really good for emerging market assets when we’ve got a really good impulse from the Fed,” said Stephen Innes, chief global markets strategist at Axi.
Australia’s S&P/ASX 200 rose 0.90% in early trade while Japan’s Nikkei 225 added 1.37%. Hong Kong’s Hang Seng index futures rose 0.92%.
In a second day of testimony in Washington, Powell reiterated the Fed’s promise to get the U.S. economy back to full employment and to not worry about inflation unless prices rose in a persistent and troubling way.
Crude oil climbed to fresh 13-month highs after U.S. government data showed a drop in crude output as a deep freeze disrupted production last week.
Gold prices struggled for traction as elevated Treasury yields eroded the allure of bullion as an inflation hedge.
The dollar hit fresh three-year lows against the pound and commodity-linked currencies including the Canadian, Australian and New Zealand dollars, which are expected to benefit from a pick-up in global trade as growth rebounds.
MSCI’s gauge of stocks across the globe gained 0.12%, as rising stocks on Wall Street pushed the global benchmark to reverse early losses.
The Dow Jones Industrial Average set a record high rising 1.35% to 31,961.86 while the S&P 500 gained 1.14%. The Nasdaq index, which fell as much as 1.3% earlier in the session, regained its footing by early afternoon and closed up 0.99%.
Shares of GameStop Corp, at the center of a volatile retail trading frenzy moves in late January, more than doubled in price in late trading and continued to soar in heavy, post-market trade.
The U.S. Food and Drug Administration said on Wednesday Johnson & Johnson’s one-dose COVID-19 vaccine appeared safe and effective in trials, paving the way for its approval for emergency use as soon as this week.
Johnson & Johnson rose 1.3% following the news, seen as another boost to a strong recovery.
The dollar index fell 0.083%, with the euro up 0.02% to $1.2167. The Japanese yen weakened 0.03% versus the greenback at 105.91 per dollar.
Oil prices rose after U.S. government data showed a drop in crude output as a deep freeze disrupted production last week.
U.S. crude recently rose 0.3% to $63.41 per barrel and Brent was at $67.31, up 2.97% on the day.
Spot gold dropped 0.1% to $1,802.72 an ounce. U.S. gold futures gained 0.30% to $1,802.00 an ounce.
