Bullish Week: Asian Markets Gain Amid Fed Rate Cut Speculations
Asian stocks are set for solid weekly gains as expectations rise for a Federal Reserve rate cut, offsetting concerns over a U.S. government shutdown. Gold reaches record highs; the dollar weakens. European futures signal a high opening, buoyed by optimistic manufacturing data. Markets remain focused on fiscal policies.
Asian markets are experiencing a strong week, with investors buoyed by increased odds of the Federal Reserve cutting interest rates soon. Despite the U.S. government shutdown, which has halted scientific research and delayed economic data, such as Friday's jobs report, the markets remain resilient.
A historically muted reaction to shutdowns is credited for this resilience. MSCI's Asia-Pacific-index climbed 0.3% to a new record, indicating a 2.3% weekly gain and a 23% total rise for the year. With holidays in China and parts of Asia, lower trading volumes are expected.
Meanwhile, European futures are poised for a higher opening, with the STOXX 600 index hitting a record high. Investors remain focused on Federal Reserve policy, economic data, and forthcoming elections in Japan. As AI drives Wall Street gains, alternative data sources hint at a sluggish U.S. job market.
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