Asian stocks rise on Fed rate cut expectations, yen stays low

From News.Az: 2024-07-03 03:43:56

Asian stocks rose on Wednesday as comments from Federal Reserve Chair Jerome Powell reinforced expectations of upcoming U.S. rate cuts. MSCI’s Asia-Pacific index was 0.64% higher, with Japan’s Nikkei jumping 1.4%. European futures were up, while U.S. Treasury yields fell after Powell’s remarks, keeping the dollar subdued.

Traders are now pricing in a 69% chance of a Fed rate cut in September, with two cuts expected this year. The U.S. labor market remains tight, with focus shifting to Friday’s nonfarm payrolls data. The dollar index was steady at 105.74, while Chinese stocks lag behind amid slowing services activity.

Powell emphasized the need for more data before considering interest rate cuts, causing Treasury yields to fall. Investors believe September could be the likely meeting for rate cuts due to new economic forecasts. Fed meeting minutes later in the day will provide more insight into rate outlook and market expectations.



Read more at News.Az: Asia stocks jump, yen stays near 38-year lows