Global Stocks Gain a Sixth Day as Tech Rises Again – Asia Market Wrap

Global equities rose on Wednesday, boosted by technology shares and anticipation that the Fed may lower interest rates to combat an employment decline.

South Korean shares were on course for a record close, while markets in Japan and Hong Kong rose. MSCI’s Asia-Pacific index is within 2% of its 2021 high, while the global all-country benchmark rose for the sixth day in a row to a new record. US equities futures rose. Oil prices surged after an Israeli attack in Qatar sparked fears of a worsening Middle East crisis.

Following further signals of a weakening labour market, investors are anticipating inflation readings in the coming days, which will help define next week’s Fed meeting and the path of rate cuts beyond 2025 – a vital test of whether Wall Street can extend this month’s rise. Money markets expect between two and three Fed cuts this year, with US producer and consumer price index data due this week.

Consumer prices in China fell below zero for the first time in three months, indicating that deflationary pressures persist in an economy on the verge of slowing.

Traders will be keeping an eye on the possibility of the US and the EU working together to pressure Russia into talks over Ukraine. Trump said he is willing to join the group in imposing wide new duties on China and India, two major purchasers of Russian oil, and that he expects to address trade with Indian PM Modi “in the coming weeks.”