Asian markets have risen, extending Wall Street’s record gains as traders anticipate a U.S. interest‑rate cut this week. The Federal Reserve’s policy decision, due on Wednesday, is expected to result in a cut, with market focus shifting to future meetings and the “dot plot” outlook for borrowing costs.
The U.S. jobs market has slowed, and inflation remains above target, while jobless claims and unemployment are at their highest levels since 2021. Stephen Innes of SPI Asset Management said that “rate cuts are back on the runway” because of the current labor market conditions. He also warned that a housing drag—mortgage payments have nearly doubled from pre‑COVID levels and affordability is at record lows—could further weigh on consumption, profits, hiring and confidence.
The Federal Reserve meeting will include a new member, Stephen Miran, who was cleared by the Republican‑majority Senate on Monday. Miran’s appointment comes as President Donald Trump demands that the Fed cut borrowing costs and accuses Chairman Jerome Powell of being unfit for the job.
In early trade, Asian indices rose: Tokyo, Hong Kong, Shanghai, Sydney, Taipei, Manila and Jakarta all posted gains, while Seoul reached another record high. Singapore and Wellington, however, slipped. The upbeat mood follows Wall Street’s S&P 500 and Nasdaq hitting fresh records. Expectations of U.S. rate cuts have weakened the dollar against its peers and pushed gold to a new all‑time high above $3,689.
President Trump announced on his Truth Social platform that he will speak with Chinese counterpart Xi Jinping at the end of the week, raising hopes for eased tensions between the world’s two economic superpowers. The United States and China have also reached a framework deal on their TikTok dispute, which is expected to be finalized by the two leaders on Friday after high‑level talks in Madrid that also covered their broader trade dispute.
Around 02:30 GMT, key Asian benchmarks showed modest gains: Tokyo’s Nikkei 225 was up 0.3 %, Hong Kong’s Hang Seng Index rose 0.3 %, and Shanghai’s Composite increased 0.1 %. The euro traded at $1.1770, the pound at $1.3604, and both West Texas Intermediate and Brent crude rose 0.3 %.
The anticipated U.S. rate cut and the upcoming Trump‑Xi talks carry significant implications for the global economy. Traders and investors will watch the Fed’s policy decision and future meetings closely, while any easing of U.S.–China tensions could spur further market gains. As the global economy evolves, these developments will provide crucial insight into future market trends.
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