Stocks Continue to Rise Due to Fed Rate-Cut Expectations – Asia Market Wrap

Stocks continued to rise on Friday as traders raised their bets on the Fed cutting interest rates next month.

S&P 500 Index futures increased 0.6% after the benchmark rose on Friday, capping a turbulent week. This momentum carried over to Asia, with the MSCI regional stock index climbing 0.7%. Hong Kong stocks rose 4% after Alibaba’s main AI app received more than 10 million downloads in the week following its relaunch.

Bitcoin started the week on the back foot, following a lengthy selloff that has left the asset on track for its worst month since 2022. Monday’s holiday in Japan resulted in no cash trade in Treasuries.

In other geopolitical developments, China resumed its spat with Japan, sending a letter to the United Nations. Also, when visiting a military base near Taiwan, Japan’s defence minister stated that plans to send missiles to the post were on track, as tensions between Tokyo and Beijing over the East Asian island remained high.

Meanwhile, US Secretary of State Rubio said Trump’s suggested November 27th deadline to achieve Ukraine’s backing for a US-backed peace plan is not carved in stone and may be extended into the following week. Rubio’s cautionary warning came after US-Ukrainian discussions in Geneva on Sunday, which both sides characterised as progress towards an agreement.