Asian markets posted gains today, driven by heightened expectations of rate cuts from the Federal Reserve following upbeat economic data from the United States. Investors were encouraged by signals of moderating inflation and robust labor market performance, fueling optimism about a potential policy shift.
Japan’s Nikkei 225 rose by 1.2%, while Hong Kong’s Hang Seng Index added 0.8%. Chinese equities also climbed, with the Shanghai Composite up 0.6%, reflecting improved sentiment across the region. The latest US data revealed a slowdown in core inflation, which, coupled with resilient job creation, bolstered hopes for monetary easing in 2024. Analysts believe this could alleviate borrowing costs and provide support for economic growth globally.
With markets closely monitoring Federal Reserve commentary, the rally underscores investors’ readiness to embrace a more accommodative policy stance, though uncertainty remains over the timing and scale of rate adjustments.
