Asian Stock Market: Rebounds firmly as DXY skids, oil boils further, Jackson Hole eyed

• Asian equities have rebounded firmly after the DXY turns volatile ahead of Jackson Hole.
• Back-to-back poor performances by the top-tier US data have weakened the DXY.
• Oil prices have crossed the critical hurdle of $95.00 firmly.

Markets in the Asian domain have rebounded sharply after a weak Wednesday, following the footprints of Wall Street. Asian equities have displayed a decent upside as the US dollar index (DXY) has slipped to near 108.50 and is expected to display more weakness ahead.

At the press time, Japan’s Nikkei225 jumped 0.60%, China A50 added 0.28%, and Nifty50 gained 0.54%. Hang Seng's morning session has been canceled because of a severe storm warning.

The DXY has turned sideways after a downside move in the Asian session. Investors are dumping the DXY after back-to-back dismal performances by the US on its economic data front. From poor US Purchasing Managers Index (PMI) data that indicates contraction in the private sector to vulnerable US Durable Goods Orders, which signifies a slowdown in the overall demand.

Also, the decline in the top-tier US economic data has accelerated the odds of trim in the extent of interest rate hikes by the Federal Reserve (Fed). There is no denying the fact that the foremost priority of the Fed is to contain soaring price pressures. However, the economic activities seek an immediate response, which may compel the Fed to slow down the pace of hiking interest rates. Therefore, investors should brace for more retracement in the DXY after the commentary of Fed chair Jerome Powell at the Jackson Hole Economic Symposium.

Meanwhile, oil prices are driving higher like there is no tomorrow. After the announcement from OPEC that the cartel is considering production cuts to offset the recent carnage in the black gold, oil prices have got an adrenaline rush. Also, investors have ignored the downbeat global PMI numbers, which accelerates demand worries ahead.