Monday brought a wave of optimism across Asian markets. Tokyo’s Nikkei 225 surged to an all-time closing high, buoyed by a weaker yen that made Japanese exporters—from automakers to tech giants—look even more competitive on the world stage.
The spark behind the rally? A blend of easing geopolitical tensions and rising expectations that the Federal Reserve will cut interest rates soon. Traders are betting hard—markets currently assign around an 85% chance to a rate reduction in September. That optimism is rippling through markets, reinforcing global appetite for risk.
Across the region, stocks in Taiwan and China followed suit, enjoying broad-based gains as investor confidence returned. U.S. equity futures for the S&P 500 and Nasdaq inched higher too, supported by robust corporate earnings forecasts and the anticipated policy signals from Jackson Hole.
There’s a cautious energy building: if Powell’s speech signals a shift toward more accommodative policy, optimism could deepen. But markets remain vigilant—ready to pivot should the narrative change. For now, though, global equity momentum finds fresh wind in its sails.
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