Global Market Today: Asian stocks rise as Fed rate-hike bets ease
MSCI’s Asia Pacific equities gauge climbed 0.3%, led by South Korea’s benchmark after Fed Governor Christopher Waller said he would support keeping rates steady if price pressures continued to ease. The comments earlier spurred a rally that helped the S&P 500 Index post its best session in a month, while the Nasdaq 100 Index climbed 1.2%.
Asian equities surged, mirroring Wall Street's gains as investors reduced expectations of a Federal Reserve interest-rate hike this month. The Japanese yen surged to its strongest level in over a month, while the MSCI's Asia Pacific equities index climbed 0.3%, driven by South Korea's benchmark. Fed Governor Christopher Waller's comments fueled optimism ahead of the final inflation figures before the September meeting.
The S&P 500 Index hit its best daily performance in a month, and the Nasdaq 100 Index rose 1.2%. Swaps priced roughly even odds of a quarter-point hike in September, down from around 70% earlier in the week. The two-year Treasury yield slipped three basis points to 4.34%, and the dollar index fell to its lowest level since May. Gold held onto its gains from the previous day, trading around $4,475 an ounce.
Bloomberg's Asia Dollar Index reached its highest level since 2024. The yen's strength reversed a month-long decline, as traders increased bets on Bank of Japan rate hikes and maintained caution over potential official measures to strengthen the currency. Waller's remarks emphasized the Fed's data-dependent approach and offered a positive assessment of recent inflation progress, ahead of the final price figures before the September meeting.
The focus now shifts to Friday's nonfarm payrolls report, with markets largely anticipating a hold while the outlook may change if inflation remains more persistent than expected.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
