Asian stocks climb on bullish Wall Street cue: Markets wrap
Asian stocks rose, following a buoyant session on Wall Street amid bets the Federal Reserve will soon signal it’s ready to start cutting interest rates.
Shares advanced in Japan, South Korea and Australia. The MSCI Asia-Pacific index headed for a third day of gains while Hong Kong futures also pointed to a rise. The advance was fueled by a bullish mood in the US, where the S&P 500 climbed for an eighth straight day — the longest winning streak this year.
In Asia, focus will be on China’s loan prime rate and minutes of the Reserve Bank of Australia’s August policy meeting. Traders will also watch to see if the yen keeps strengthening against the greenback ahead of Bank of Japan Governor Kazuo Ueda’s appearance in parliament Friday, where he’s expected to shed light on the policy outlook.
A bumpy stretch for investors in the dog days of July and August hasn’t tempered their zest for equities, with allocations still robust despite a bout of recent volatility and heightened uncertainty around the economy. Treasury 10-year yields were little changed while a gauge of the dollar was on track for a third day of losses.
“Investors ‘climbed a wall of worry’ as the stock-market relief rally gained momentum,” said Craig Johnson at Piper Sandler. “Equities will likely consolidate ahead of Fed commentary at Jackson Hole this week.”
Meanwhile, with the Fed approaching a crucial pivot point, financial markets will be looking for confirmation from Jerome Powell Friday that the US central bank will lower rates in September. But
