Asia markets rise as Fed signals rate cuts, jobs data disappoints
Asian stocks mostly climbed on Thursday after comments from U.S. Federal Reserve officials suggested possible interest rate cuts, and a Japanese bond auction eased investor concerns.
Shares in Australia, India, and Japan gained, while Chinese stocks fell sharply—the biggest drop since April—amid reports of regulatory measures to curb speculation. MSCI’s Asia-Pacific index (excluding Japan) fell 0.2%, dragged down by losses in China, while the CSI 300 index dropped 2.6%, marking its third consecutive day of declines, News.Az reports, citing Reuters.
In Australia, the ASX 200 rose 1%, recovering from its largest one-day drop since April, and Japan’s Nikkei 225 climbed 1.6%. India’s Sensex increased 1.1% following government tax cuts aimed at boosting consumption.
Market optimism was fueled by dovish Fed signals and weaker-than-expected U.S. job openings, which raised expectations of a rate cut later this month. Traders are now pricing in a nearly 100% chance of a Fed rate cut in September.
“Investors have compelling reasons to maintain a risk-on stance,” said Thilan Wickramasinghe, head of research at Maybank Singapore. “Job openings hit a 10-month low, increasing pressure on the Fed to ease rates—exactly what markets have been waiting for.”
Meanwhile, U.S. Treasury yields edged higher, the dollar rose slightly against the yen, and Brent crude fell 0.6% to $67.17 per barrel. Spot gold slipped 0.8% to $3,529.94 per ounce after hitting a record high on Wednesday.
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