Market Reactions Ahead of Key Fed Policy Week

Asian share markets rose on Monday, as investors anticipated a crucial week for U.S. interest rate policy. Indices in Japan and Taiwan achieved record highs, and Chinese blue chips reached a 10-month peak, reflecting a general risk-on sentiment in the region.

Political dynamics shifted as U.S. President Donald Trump showed alignment with Russian President Vladimir Putin, favoring a peace deal with Ukraine. Trump's upcoming meetings with Ukrainian leader Volodymyr Zelenskiy and European officials are poised to clarify the situation.

A significant focus will be the Federal Reserve's Jackson Hole symposium, slated for August 21-23, where Chair Jerome Powell is expected to discuss economic outlooks. Markets imply an 85% chance of a rate cut in September. Solid earnings from U.S. companies continue to bolster stock futures, with bond markets adjusting to potential Fed easing.

(With inputs from agencies.)