{"id":10769,"date":"2025-09-09T02:03:07","date_gmt":"2025-09-09T02:03:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/10769\/"},"modified":"2025-09-09T02:03:07","modified_gmt":"2025-09-09T02:03:07","slug":"asian-stocks-rise-to-track-us-optimism-on-fed-cuts","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/10769\/","title":{"rendered":"Asian stocks rise to track US optimism on Fed cuts"},"content":{"rendered":"<p>(Sept 9):\u00a0Asian stocks climbed on Tuesday as Wall Street\u2019s upbeat mood ahead of expected US Federal Reserve (Fed) rate cuts flowed into regional trading.<\/p>\n<p>MSCI\u2019s Asia-Pacific equities gauge reached its highest levels since February 2021 as shares in Japan and South Korea rose. The moves followed a surge in bets on rate cuts by the US central bank that pushed stocks near record highs on hopes that easier policy will bolster corporate America.<\/p>\n<p>In Japan, the implications of the nation\u2019s\u00a0latest political turmoil\u00a0have spilled into markets. Long-maturity Japanese government bonds slumped Monday as Prime Minister Shigeru Ishiba\u2019s decision to step down underscored expectations for looser fiscal policy.<\/p>\n<p>The S&amp;P 500 rebounded on Monday after a sell-off the prior session due to the weak jobs report. Even as upcoming data is projected to show stalled progress on reducing inflation, traders expect almost three Fed cuts this year, starting this month. Treasuries were steady, with the two-year yield remaining at its lowest since 2022. The dollar fell and gold stayed around\u00a0record high\u00a0levels.<\/p>\n<p>\u201cFor the next several days, markets in Asia are likely to take their cue from the US, with few regional catalysts in sight,\u201d said Frederic Neumann, HSBC\u2019s chief Asia economist. He sees American inflation data as helping to clarify the interest-rate path not just for the Fed, but also for Asian central banks including the People\u2019s Bank of China.<\/p>\n<p>Ahead of next week\u2019s Fed meeting, Thursday\u2019s core consumer price index is projected to show a 0.3% increase in August for a second month. Before that, figures from the Bureau of Labor Statistics on Tuesday will likely unveil another US jobs markdown that will set the stage for a rate cut.<\/p>\n<p><a class=\"mobx embedimg-icon\" data-rel=\"ceolightbox\" href=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/09\/global1_20250909095647.jpg\"><img decoding=\"async\" alt=\"\" src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/09\/global1_20250909095647.jpg\"\/><\/a><\/p>\n<p>Fed officials have signalled concerns are shifting from the inflation risks posed by tariffs to weakness in the job market.\u00a0Steady inflation expectations\u00a0are an indication that tariffs could prove a one-time price shock. That\u2019s even if they take several months to work their way through the economy.\u00a0<\/p>\n<p>\u201cWhile the Sept\u00a05 report showed job growth had slowed, it doesn\u2019t appear to be signaling a recession,\u201d according to the\u00a0Invesco Global Market Strategy Office. \u201cSlower growth, anchored inflation expectations, falling yields, and anticipated rate cuts point to an optimistic outlook for stocks.\u201d<\/p>\n<p>Elsewhere, Indonesian President Prabowo Subianto\u00a0abruptly replaced\u00a0Sri Mulyani Indrawati as the finance minister, risking renewed financial turmoil for Southeast Asia\u2019s biggest economy following violent protests in recent weeks against his administration.<\/p>\n<p>China\u2019s\u00a0export growth slowed\u00a0to the weakest in six months as a slump in shipments to the US deepened again, although a surge in sales to other markets kept Beijing on track for a record trade surplus.\u00a0<\/p>\n<p><a class=\"mobx embedimg-icon\" data-rel=\"ceolightbox\" href=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/09\/global2_20250909095645.jpg\"><img decoding=\"async\" alt=\"\" src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/09\/global2_20250909095645.jpg\"\/><\/a><\/p>\n<p>In France, Prime Minister Francois Bayrou\u00a0lost\u00a0a confidence motion in Parliament, forcing a third change in government in just over a year. The country\u2019s 10-year note futures opened steady.\u00a0<\/p>\n<p>To Megan Horneman at Verdence Capital Advisors, upcoming inflation data probably won\u2019t be enough to change the likelihood of a Fed reduction in September. The biggest question for investors now is how many more rate cuts we will receive.<\/p>\n<p>\u201cAfter this week\u2019s inflation data, we will get a better picture on what the Fed can do with rates,\u201d Horneman said. \u201cHowever, we are not out of the woods with inflation, and the Fed may deliver a \u2018hawkish cut\u2019 while reminding investors of their\u00a0dual mandate, especially if inflation continues to move further away from their target.\u201d<\/p>\n<p>In commodities, oil rose for a second day as investors weighed the the prospect for softening demand after Saudi Arabia cut pricing for most of its grades.<\/p>\n<p>Stocks<\/p>\n<p>&#13;<br \/>\n\tS&amp;P 500 futures were little changed as of 9.49am\u00a0Tokyo time on Tuesday&#13;<br \/>\n\tJapan\u2019s Topix rose 0.7%&#13;<br \/>\n\tAustralia\u2019s S&amp;P\/ASX 200 fell 0.5%&#13;<br \/>\n\tEuro Stoxx 50 futures fell 0.2%&#13;<\/p>\n<p>Currencies<\/p>\n<p>&#13;<br \/>\n\tThe Bloomberg Dollar Spot Index was little changed&#13;<br \/>\n\tThe euro was little changed at US$1.1772&#13;<br \/>\n\tThe Japanese yen rose 0.2% to 147.21 per dollar&#13;<br \/>\n\tThe offshore yuan was little changed at 7.1203 per dollar&#13;<\/p>\n<p>Cryptocurrencies<\/p>\n<p>&#13;<br \/>\n\tBitcoin fell 0.2% to US$111,810.08&#13;<br \/>\n\tEther rose 0.2% to US$4,306.34&#13;<\/p>\n<p>Bonds<\/p>\n<p>&#13;<br \/>\n\tThe yield on 10-year Treasuries was little changed at 4.04%&#13;<br \/>\n\tJapan\u2019s 10-year yield declined 2.5 basis points to 1.545%&#13;<br \/>\n\tAustralia\u2019s 10-year yield declined three basis points to 4.25%&#13;<\/p>\n<p>Commodities<\/p>\n<p>&#13;<br \/>\n\tWest Texas Intermediate crude rose 0.3% to US$62.44 a barrel&#13;<br \/>\n\tSpot gold was little changed&#13;<\/p>\n","protected":false},"excerpt":{"rendered":"(Sept 9):\u00a0Asian stocks climbed on Tuesday as Wall Street\u2019s upbeat mood ahead of expected US Federal Reserve (Fed)&hellip;\n","protected":false},"author":2,"featured_media":10770,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[138,220,111,139,69],"class_list":{"0":"post-10769","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-markets","10":"tag-new-zealand","11":"tag-newzealand","12":"tag-nz"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/10769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=10769"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/10769\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/10770"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=10769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=10769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=10769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}