Asian equities could trade higher following a risk-on day globally after the third straight decline in the US Consumer Price Index took 25bps at the February Fed meeting to a near-locked and took hawkish pressure off of the Fed.
Traders could start reviewing their exposure and adding risk once again as a monetary policy dovish pivot could be the base case scenario this year. Gains in EM stocks, big and small caps, could be seen in the session ahead, with easier Fed policy and a softer Dollar against major and EM currencies. The data reduced hard landing chances and could support stocks levered to the real economy. Commodity/energy exposure stocks could also show strength via the softer Dollar and a growing change of an easier monetary policy that could reduce the recession risks.
