BMirror Desk:
Asian markets echoed the global rally on Tuesday, buoyed by the continued expectation of interest rate cuts from the US Federal Reserve later this year.
This positive sentiment follows Friday’s weak US jobs data, a strong corporate earnings season, and reassuring comments from Fed Chair Jerome Powell about the future of interest rates. Additionally, supportive policies in China and historically low valuations in some markets are fueling the upswing.
Investors remain focused on upcoming remarks from Fed officials, particularly in light of the recent jobs report. This data contrasts with earlier inflation figures that had initially dampened hopes for rate cuts. However, Powell’s comments last week hinting at potential cuts later in the year helped stabilize markets.
The positive mood is a stark contrast to the volatility experienced earlier this month due to fluctuations in the yen. Major indices on Wall Street, including the S&P 500 and Nasdaq, closed with gains exceeding 1%. This momentum largely carried over to Asia, with most major markets experiencing growth, including Tokyo, Shanghai, Sydney, Singapore, Seoul, Taipei, and Manila. However, Hong Kong, Wellington, and Jakarta faced some resistance.
Market Movements (as of 02:30 GMT):
Tokyo’s Nikkei 225 rose 1.2% to 38,688.66.
Hong Kong’s Hang Seng Index dipped 0.4% to 18,499.45.
Shanghai Composite edged up 0.1% to 3,143.37.
The US dollar strengthened against the yen, trading at 154.50 yen compared to 153.86 yen on Friday.
Oil prices saw minor increases, with West Texas Intermediate crude up 0.2% to $78.67 per barrel and Brent North Sea crude up 0.2% to $83.46 per barrel.
