Fed Elevates US Equity Futures & Jolts Asian Assets – Asia Market Wrap

Asian stocks rose alongside US share futures on optimism that the Federal Reserve’s half-point interest rate decrease will lead the world’s largest economy to a so-called soft landing.

Japan’s markets led advances in Asia, with an MSCI index of regional shares rising by the greatest in a week. US stock futures rose in Asian trading after the S&P 500 Index fell 0.3% following the Fed’s pronouncement on Wednesday.

Treasuries sank on wagers that the Fed’s robust start to the cutting cycle will imply it will need to lower interest rates less in the long run. Chair Jerome Powell warned against anticipating substantial cuts would continue, implying borrowing prices may need to remain higher than pre-pandemic levels.

In Asia, Singapore stocks were on course for their highest close since 2007, as the expectation of reduced interest rates boosted the city-state’s real estate investment trusts and increased the attraction of the high-yielding market.