Monday’s Asian markets kicked off the week with a burst of optimism. Tokyo’s Nikkei 225 shot to record highs, while Taiwan’s indices followed suit. Over in China, the CSI 300 surged to its strongest level in almost a year—signals of renewed investor confidence fueled by twin forces.
The buzz is all about the upcoming Jackson Hole symposium, where Fed Chair Powell is expected to hint at a more accommodative stance. Markets are betting hard—a roughly 85% chance of a rate cut in September is fueling bullish sentiment and stock inflows across the region.
Backing the optimism is a stellar earnings backdrop out of the U.S., with S&P 500 firms delivering an 11% year-over-year earnings per share gain, led by tech titans. U.S. futures are firm too—reflecting an encouraging global tone.
Geopolitics added another tailwind. Shifts in U.S. messaging towards Russia appear to be easing pressures in energy markets. Brent crude prices edged lower, while gold staged a modest rebound. The dollar held steady, anchoring a broader sense of market calm.
In all, Asia’s rally can be traced to two hopeful signals: stronger prospects for Fed support and tame global tensions. Now, all eyes are on whether this optimism can hold—especially when Powell takes the stage later this week.
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