23.07.201405:30:46UTC+00Asian stocks rise on weak dollar and oil

Asian stocks gained in the opening session on Wednesday after a surge in Chinese shares lifted the regional benchmark index while the dollar weakens on belief that growth in the Asian market will still be supported by the two largest economies. Crude oil dropped while the Indonesian rupiah climbed.

The MSCI Asia Pacific Index advanced by 0.4%, 2:41 pm, Tokyo time. This is advance spells the sixth-year high for the regional benchmark index. The Hang Seng China Enterprises Index or the H-share index added 1.3%.

Japan’s Nikkei 225 Index and South Korea’s KOSPI Index declined by 0.10% or 14.72 pips to 15,328.56 and 0.03% or 0.61 pips to 2028.32 respectively. Hong Kong’s Hang Seng Index and China’s Shanghai Composite Index are up by 0.53% or 125.82 pips to 23,908.03 and 0.09% or 1.91 pips to 2028.32 respectively. Australia’s S&P/ASX 200 and the CNBC 100 gained 0.46% or 25.61 pips to 5568.90 and 0.30% or 22.43 pips to 7,514.77 respectively.

Chinese equities are bolstering in the middle of conjectures that the government will provide additional measures to boost property markets. The US and European Union added further sanctions on Russia’s access to capital markets. US stocks advanced due to a positive corporation earnings report.

Head of futures, options, and cash equities trading at Newedge Group SA, Toby Lawson believes that the Federal Reserve is in no hurry to increase interest rates in the near future given the low inflation data. He adds that the market was wary because of the potential escalation of geopolitical situations in Ukraine last week, however, investors are also easing their concerns as the conflict wanes with sign of cooperation between pro-Russia rebels in Ukraine and the international investigation team for the downed airplane.