Asia stocks rise as relief rally builds after UK U-turn

Asia stocks nudged higher

Asia stocks nudged higher on Tuesday as the dramatic U-turn in British fiscal policy brightened investor sentiment, while the U.S. dollar took a breather at its lowest levels in more than a week as a revival in risk-taking lowered its appeal, Qazet.az reports.

Britain's new finance minister Jeremy Huntabandoned most of Prime Minister Liz Truss' economic plan that had led to a political maelstrom fuelled by market turmoil, with the pound hitting record lows in recent weeks and the Bank of England being forced to intervene.

Morgan Stanley analysts said the fiscal U-turn was likely to have significant implications for the BoE as its economists now revise their call for the November meeting to a 75-basis-point rate hike, from 100 basis points.