Asian stock, except China, surge broadly today as US Treasury nominee, former Fed chair, Janet Yellen is report to adopt an “act big” stance on fiscal stimulus. Commodity currencies are trading broadly higher, as led by Australian Dollar. Yen, Dollar and Swiss Franc are back under pressure.
Yellen will appear before the Senate Finance committee today for her confirmation hearing. According to the prepared remarks obtained by the Financial Times, Yellen will say, “neither the president-elect, nor I, propose this relief package without an appreciation for the country’s debt burden.”
“But right now, with interest rates at historic lows, the smartest thing we can do is act big. In the long run, I believe the benefits will far outweigh the costs, especially if we care about helping people who have been struggling for a very long time,” She’ll add.
At the time of writing, Hong Kong HSI is up 883.4 pts or 3.06%. The strong break of the medium term channel resistance should confirm upside acceleration. Next target is 161.8% projection of 21139.26 to 26782.61 from 23124.25 at 32255.19. Current development also suggest that rise from 21139.26 is likely the start of another long term up trend, that would likely take out 33484.7 record high in the medium term.