Asian Stocks Surge on China Stimulus and Fed's Rate Cut Expectations

Monday, 23 September 2024, 18:15

Asian stocks surged as expectations of a China stimulus announcement ramped up, coupled with the Federal Reserve's hints at further rate cuts. This optimism buoyed global markets, especially in Japan where equity benchmarks gained over 1%. Investors closely monitor the Chinese economy and Wall Street ahead of key economic data releases.

Moneycontrol — Asian Stocks Surge on China Stimulus and Fed's Rate Cut Expectations

Asian Stocks and China Stimulus

Asian stocks have recently experienced a notable surge, primarily fueled by optimism surrounding potential China stimulus measures. Comments from Federal Reserve policymakers have also pointed towards the likelihood of additional rate cuts, further boosting market confidence.

Market Reactions in Asia

Japanese equity benchmarks rose by more than 1% following their reopening after a holiday.
Shares in South Korea also advanced.
Hong Kong futures indicate an increase of at least 1%.

In the US, stock futures declined slightly after the S&P 500's modest close earlier in the week.

Chinese Economy and Global Implications

Speculation surrounds impending actions by Beijing to revitalize economic growth after significant downturns.
Authorities plan to hold a press conference on economic development support, hoping to rejuvenate confidence.
China’s benchmarks have plummeted to five-year lows this month.

US Economic Indicators and Wall Street's Outlook

Recent data from the US indicated slowing business activity yet maintained a sense of stability in the world's largest economy, calming fears of economic downturns. Analysts now place their expectations on upcoming vital metrics, including personal spending and the Fed’s inflation gauge.

Federal Reserve Rate Cuts Anticipated

Markets are predicting nearly three-quarters of a point in policy easing by year-end as rate cuts loom.
Investors are also focused on Friday’s job data, which may provide direction on the economy's trajectory.

Global Market Effects and Regional Developments

In Asia, all eyes are on the Reserve Bank of Australia, which is anticipated to maintain its cash rate at a 12-year high of 4.35%. Meanwhile, gold prices have reached an all-time high amid growing geopolitical tensions.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.