Asian market on the rise hoping for a change in the Fed's rhetoric

On Tuesday, the Asian market is growing amid hopes that the US Federal Reserve will begin to soften its «hawkish» mood due to the current weakening of the economy. The partial cancellation of the tax plan in the UK also contributed to the growth of sentiment.

In particular, the Japanese index Nikkei 225 jumped to 26.992.21, adding almost 3%. Taiwan's index (13.576.52) and South Korea's KOSPI (2.209.38) also rose by more than 2% each. 

The Australian ASX 200 index became the leader of growth, rising by almost 4% (to 6,699.30) after the Reserve Bank meeting, at which the rate was raised by a smaller amount than expected – by 25 bps, to 2.6%. The regulator made it clear that it would continue to raise the rate, but at the same time it would try to maintain a balance between tightening monetary policy and ensuring sustainable economic growth.

The Asian stock market is growing, even despite a reduction in trading due to a week-long holiday in China and Hong Kong. Support was provided by weak data from the United States, where a decrease in indicators in manufacturing and construction was recorded. These statistics have increased hopes that the Fed will reduce the pace of interest rate hikes earlier than announced. 

An additional positive factor for Asian markets was the cancellation of the tax plan in Britain. However, despite the local growth, analysts note that the Asian market is still trading near annual lows.