Asian Stocks Rise on Rate Cut Expectations; Focus on ECB

Reported 6 months ago

Asian stocks surged as expectations of a U.S. Federal Reserve interest rate cut in September grew, with the euro strengthening ahead of the European Central Bank's anticipated rate cut. The shift in Fed expectations led to increased oil prices and lowered Treasury yields, spurred by indications of a weakening U.S. labor market. Asia-Pacific shares outside Japan rose 1.14%, tech stocks leading the gains, with China and Hong Kong stocks also climbing. Indian markets were poised for stability amid Prime Minister Narendra Modi's third-term leadership uncertainties. The S&P 500 and Nasdaq reached record highs, with Nvidia becoming the world's second most valuable company. Market sentiment remains influenced by labor market data, with Fed rate cuts now projected at 49 basis points this year, heightening investor interest in the upcoming nonfarm payroll report for May.

Source: YAHOO

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