“The spillover boost from continued optimism about U.S.-China trade talks is buoying sentiment,” Vishnu Varathan, a senior economist with Mizuho Bank, said in a note.
Furthermore, minutes for the recent Fed policy meeting revealed patience on futures rate hikes out of the central bank policy makers, further bolstering market sentiment Thursday. The four interest rate hikes last year helped prop up the U.S. dollar and also triggered a broader sell-off in riskier emerging assets.
“The takeaway is that the Fed is patient about assessing evolving global growth/financial market conditions, as well as patient about taking stock of tightening so far,” Varathan said in the note.
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