The Ultimate Guide to Asian Share Market Rally After US Interest Rate Cut
Asian shares continued their upward trend on Friday following a significant interest rate cut in the United States. Meanwhile, the yen remained volatile ahead of Japan's monetary policy decision, leaving traders on edge for clues about future tightening.
While China's central bank kept its benchmark lending rates unchanged, disappointing hopes for immediate policy support, other Asian markets saw gains. MSCI's broadest index of Asia-Pacific shares outside Japan rose to a two-month high, with the Nikkei jumping 1.9% driven by a weaker yen.
Focus now shifts to the Bank of Japan's (BOJ) upcoming policy decision, where Governor Kazuo Ueda will likely address the timing and pace of further rate hikes. The yen has already faced losses against the US dollar, with expectations of more tightening measures.
Overnight, Wall Street digested the Federal Reserve's rate cut, with investors optimistic about continued US economic growth. Markets are pricing in further easing, with potential rate cuts in November and by year-end.
Despite some minor fluctuations, US stock futures remain steady, while the dollar trades near one-year lows. Gold prices are near record highs, and oil prices are set for a second consecutive weekly gain.
In summary, the current market sentiment is positive, with expectations of continued growth and potential policy measures driving investor confidence. Stay informed and make strategic decisions to capitalize on these trends for your financial well-being.