Asian markets have extended their gains after a record‑breaking day on Wall Street, buoyed by fresh data that points to a weakening U.S. jobs market. The Bureau of Labor Statistics revised down the number of new jobs created in the 12 months through March by a record 911,000, suggesting the economy is slowing faster than previously thought. This revision has heightened expectations of a series of Federal Reserve rate cuts, with the central bank’s policy decisions for the rest of the year now likely to hinge on upcoming consumer‑price‑index (CPI) figures.
Fed Chair Jerome Powell had earlier signaled that cuts were forthcoming, despite initial pressure from President Donald Trump to act because of high inflation concerns. Analysts now contend that the only remaining question is the size of the reduction at the Fed’s policy meeting next week. “The punchy revision will only accelerate the pressure on the Fed to ease in September and throughout the balance of 2025,” said Chris Weston of Pepperstone. He added that, unless the core CPI print comes out unusually benign, the Fed is likely to cut rates by 25 basis points and maintain a strong bias toward further cuts in the months ahead.
The positive momentum continued across Asian markets on Wednesday. Hong Kong rallied to a fresh four‑year high, while Seoul edged toward a record on hopes for South Korean economic reforms. Gains were also seen in Tokyo, Sydney, Singapore, Taipei, Wellington and Manila. Jakarta recovered some of Tuesday’s losses, which had been triggered by President Prabowo Subianto’s removal of Finance Minister Sri Mulyani Indrawati in a cabinet reshuffle following deadly anti‑government protests.
In China, the CPI slipped back into negative territory, indicating ongoing consumer struggles. Nevertheless, Fidelity International economist Peiqian Liu remains upbeat, citing last year’s stimulus measures, the emergence of the DeepSeek AI platform, improving exports and AI investment. The extension of the U.S.–China trade truce until early November has also provided breathing room, supporting confidence in this year’s growth targets.
Key figures around 02:30 GMT showed the Tokyo Nikkei 225 up 0.5% at 43,684.29, the Hong Kong Hang Seng Index up 1.0% at 26,206.05, and the Shanghai Composite modestly higher at 3,809.48 (+0.1%). The euro/dollar slipped to $1.1692. West Texas Intermediate crude rose 0.7% to $63.07 per barrel, and Brent North Sea crude gained 0.6% to $66.80 per barrel.
The upward trend in Asian markets is expected to persist as investors watch the Fed’s next move. Later in the day, the release of CPI data will offer further guidance on the central bank’s policy path for the remainder of the year. As the global economy evolves, market participants will continue to monitor key economic indicators and central‑bank actions closely.
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