As US data Boosts Fed Cut bets, Asian Stocks Rise – Asia Market Wrap

Asian markets matched Wall Street’s advances as falling US core inflation kept the possibility of a Fed rate cut this year alive. The Yen rose in response to predictions that the BoJ will raise interest rates.

Gauges in Australia, Hong Kong, and South Korea also rose, driving the Asian stocks index higher for the third day. The S&P 500 climbed 1.8% on Wednesday, its strongest day since the November election, erasing its 2025 drop. US stock futures fell.

The Yen surged on reports that BoJ policymakers see a good possibility of raising interest rates next week as long as Trump’s entry at the White House does not bring too many unpleasant surprises. Treasury yields were little changed, while the Dollar index ended a two-day losing skid.

In commodities, oil rose sharply early in the year on growing concerns about global supply issues, as commercial crude stocks in the US fell for the longest time since 2021. Gold slid.

The South Korean won fell after central bank Governor Chang-Yong stated all six board members were willing to decrease interest rates within the next three months.