Asian stocks have continued the global equities rally after a fresh round of U.S. data reinforced expectations that the Federal Reserve will cut interest rates again next month. The report that Kevin Hassett, President Donald Trump’s top economic aide, is the frontrunner to become the Fed’s next chair has added to the risk‑on mood, restoring investor confidence after a recent stumble.
U.S. data showing a slowdown in retail sales and a drop in consumer confidence have increased bets that the Fed will lower borrowing costs at its December meeting. The Labor Department’s wholesale‑inflation report for September was in line with forecasts, but the rise was driven by a sharp jump in goods prices, underscoring higher costs for businesses. Analysts are wary of this reading, especially ahead of the holiday‑spending season. Meanwhile, the Conference Board’s consumer‑confidence index fell to its lowest level in seven months, with shoppers expressing greater concern about labor‑market conditions and household‑income outlooks.
The prospect of a more dovish Fed has been bolstered by Hassett’s potential appointment, as he is seen as closely aligned with President Trump’s preference for lower rates. National Australia Bank’s Rodrigo Catril said the appointment would likely reinforce the administration’s push for easier policy.
Asian markets have followed Wall Street’s lead. Tokyo and Seoul each rose about two percent, while Hong Kong, Shanghai, Sydney, Singapore, Taipei and Wellington also posted solid gains. The advances come after a November pullback driven by worries over lofty valuations, particularly in the tech sector.
In corporate news, Chinese e‑commerce giant Alibaba fell more than one percent after reporting a profit decline linked to consumer subsidies and the construction of data centers for its AI ambitions. The results have raised questions about the wisdom of the large cash outlays into the artificial‑intelligence sector.
Key figures around 02:30 GMT included the Tokyo Nikkei 225 up 1.9 % at 49,605.57 and the Hong Kong Hang Seng Index up 0.6 % at 26,054.70. The euro and the pound were both stronger against the dollar, while the dollar fell against the yen and the euro slipped against the pound. West Texas Intermediate crude rose to $58.06 per barrel and Brent North Sea crude to $62.62 per barrel.
The global rally is expected to continue as investors watch the Fed’s next move and its potential impact on the world economy. The appointment of a new Fed chair and the upcoming holiday‑spending period are likely to be key factors shaping market direction.
Comments are closed for this story.