Asia stocks rise, dollar eases as Yellen green-lights risk
Source: Reuters
Asian stocks rose to a five-week high on Tuesday after U.S. Federal Reserve Chair Janet Yellen gave a largely upbeat assessment of the U.S. economic outlook, while the dollar declined on easing expectations of interest rate increases in coming months.
Financial spreadbetters predicted Britain's FTSE 100 would open down 0.10 percent, Germany's DAX to gain 0.15 percent, and France's CAC 40 to open flat.
MSCI's broadest index of Asia-Pacific shares outside Japan rose more than 1 percent, taking its gains to 6 percent in two weeks, as investors judged the Fed's cautious stance as well-suited to equities.
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"Yellen's comments yesterday downplayed the impact of the jobs data last week and gave a cautious sense of optimism on the outlook for the U.S. economy," said Fan Cheuk Wan, head of Asia investment strategy at HSBC Private Bank.
"Her comments point towards the world remaining stuck in a low-growth and low-yield environment which should be positive for risky assets and keep the dollar soft," she said.
The Fed chief said last month's jobs report was "disappointing" but warned against attaching too much significance to the payrolls data in isolation.
Read more: http://www.reuters.com/article/us-global-markets-idUSKCN0YT01W