Asian Stock Market: Positive market mood strengthens Asian equities, DXY tumbles to monthly lows

• A decent slippage in the DXY has strengthened the Asian equities.
• The US NFP is seen lower at 310k against the prior print of 428k.
• No announcement on banning Russian oil at the EU Leaders summit is good news for the oil bulls.

Markets in the Asian domain are advancing strongly higher as the improved risk appetite of investors has underpinned the Asian equities. The indices in the Asian region have carry-forwarded their last week’s positive mood on Monday and extremely oversold equities are indicating the continuation of the bullish momentum.

At the press time, Japan’s Nikkie225 added 2.01%, China A50 jumped 0.68%, Hang Seng gained 2.10% and Nifty50 jumped 1.40%.

A significant rebound in the Asian equities is backed by a plunge in the US dollar index (DXY). The DXY has eased in early Tokyo after a mild up move. The asset has tumbled to near its monthly lows at 101.45 and more losses are expected from the DXY on the lower forecast of the US Nonfarm Payrolls (NFP). As per the market consensus, the US economy will report an addition of 310k jobs in the labor force. In the month of April, the US economy added 428k jobs. Therefore an underperformance on the employment front is forcing the market participants to dump the safe-haven asset.

On the oil front, the black gold is struggling to sustain above $116.00 as an embargo on Russian oil imports is not the outcome of the European Union (EU) Leaders summit. This has postponed the context of supply worries. However, the re-opening of Shanghai has bolstered the odds of a rebound in the aggregate demand. The withdrawal of restrictions on the movement of men, materials, and, machines by the Chinese administration has supported the oil prices.