Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei and Jakarta were all in the green, along with London, Paris and Frankfurt.
However, while there is a broad expectation that the Fed will cut rates, some analysts remained sceptical.
“I continue to believe the Fed will not reduce rates at all this year, given rising inflation caused by tariffs and a relatively stable unemployment rate,” Lazard chief market strategist Ronald Temple wrote.
“I would align with the majority of the FOMC members who believe it is more appropriate to hold policy constant until there is greater clarity in terms of the effects of tariffs and stricter immigration enforcement on inflation and employment.”
And economists at Bank of America said: “Our base case since January has been that the Fed won’t cut rates this year. The … downward revisions to nonfarm payrolls in the July jobs report challenges our view”.
“It now appears that the labour market stalled in May and June. This increases the probability of what we view as the most likely alternative scenario: ‘bad cuts,’ due to deterioration in the labour market. But we are sticking with our Fed call for now.”
Traders were keeping an eye on trade talks between Washington and dozens of its trade partners after Trump imposed tariffs of between 10 and 41 per cent on them.
Among those to strike a deal is India, which Trump on Monday threatened to hit with “substantially” higher rates over its purchases of Russian oil. Shares in Mumbai edged down.
https://www.channelnewsasia.com/asia/asian-markets-track-wall-st-rally-fed-rate-cut-bets-5277366
