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China eases Covid restrictions

Asian stock markets are rallying today, especially under-pressure Chinese ones, as the price of oil fell overnight, and China eased isolation conditions domestically. China covid cases have fallen to around 3,000, and, most significantly, the government has shortened post-infection isolation requirements.

Overnight, US markets gorged themselves on lower oil prices as readily as they have convinced themselves that e- talks will bear fruit recently. The buy-the-dippers were out in force, unwinding the previous day's selloffs. Unfortunately, oil is also rallying in Asia today as well, tempering gains across the region.

The S&P 500 rose an impressive 2.15%, while the Nasdaq rocketed 2.90% higher, and the Dow Jones rallied by 1.86%. US futures in Asia have eased by a modest 0.15% as short-term money books some profits. In Japan, the Nikkei 225 is 1.50% higher, with South Korea's Kospi up 0.75%.

China markets have given back some early gains but still remain in respectably positive territory. The Shanghai Composite has risen 1.10%, with the CSI 300 rallying 1.60%, and Hong Kong climbing 1.22% higher. Singapore has risen by 1.20%, Kuala Lumpur by 0.30%, Jakarta by 0.50%, but Taipei has eased by -0.30%. Australian markets are also rallying modestly, the ASX 200 and All Ordinaries climbing by 0.90%.

Gains today will be limited across Asia, Europe, and the US ahead of the FOMC policy decision this evening. The Fed will be raising rates by 0.25%, but no less important is how hawkish, or not, the FOMC is around future rate hikes.