Asian markets continue to rally as investors remain optimistic about potential interest rate cuts by the US Federal Reserve this year. The recent jobs data, combined with positive earnings reports and reassuring comments from Fed chief Jerome Powell, have contributed to the upward trend in equities.
In addition, positive signals from Beijing regarding support for the Chinese economy and attractive valuations in Hong Kong and mainland China have provided a boost to these markets.
Investors are now closely monitoring comments from Fed officials in light of the unexpected weakness in the jobs data for April. Powell’s statement last week, indicating a possibility of rate cuts at some point, has helped stabilize market volatility.
With a relatively light week in terms of economic data, market participants are paying close attention to any hints about potential rate cuts from Fed members. The overall sentiment remains positive, with major markets in Asia following the lead of Wall Street, which saw gains in the S&P 500 and Nasdaq.
Tokyo, Shanghai, Sydney, Singapore, Seoul, Taipei, and Manila all registered gains, while Hong Kong, Wellington, and Jakarta faced some struggles to maintain momentum after recent gains. Investors are hopeful that the current rally will continue despite potential headwinds.
