Asian Markets Surge on Prospect of U.S. Rate Cuts

Asian share markets joined Wall Street in a march higher on Friday, buoyed by the potential for further U.S. interest rate cuts, which promise to ease borrowing costs globally. This comes as a relief to strained bond markets while exerting downward pressure on the dollar.

Notable gains were seen across indexes in Japan, South Korea, and Taiwan, reaching record levels fueled by high hopes for AI-related earnings growth. With U.S. consumer price data being less threatening than anticipated, the Federal Reserve appears poised to cut rates next week, as analysts anticipate further rate reductions.

Europe also felt the ripple effects, with share futures rising on the news. Meanwhile, oil and gold prices remained relatively stable, as the International Energy Agency's forecasts pointed to a potential oil surplus, exerting some pressure on oil markets.

(With inputs from agencies.)