Asia Markets Rally on Wall Street Gains and Fed Rate-Cut Hopes; South Korea’s Kospi Hits Record High
Asia-Pacific markets climbed on Wednesday, following Wall Street’s strong performance as investors anticipated a potential Federal Reserve rate cut. Optimism over easing U.S. monetary policy, coupled with China’s latest inflation data, fueled gains across the region. Key indices in Singapore and South Korea reached record highs, signaling robust investor sentiment despite mixed economic indicators.
In China, the CSI 300 rose 0.21% to close at 4,445.36, while Hong Kong’s Hang Seng Index jumped 1.04%, and the Hang Seng Tech Index surged 1.82%. Chinese consumer prices fell 0.4% in August, exceeding expectations for a 0.2% decline, and the producer price index dropped 2.9% year-on-year, showing improvement from July’s 3.6% decline. Meanwhile, Alibaba Group shares gained 2.1%, boosted by a $100 million funding round for Chinese humanoid startup X Square Robot led by Alibaba Cloud.
Japan’s Nikkei 225 hit an all-time high, rising 0.87% to 43,837.67, while the Topix index climbed 0.6% to 3,140.97. South Korea’s Kospi advanced 1.67% to a record 3,314.53, marking its seventh consecutive session of gains, even as the country’s seasonally adjusted unemployment rate ticked slightly higher to 2.6% in August. Australia’s S&P/ASX 200 added 0.31%, closing at 8,830.4, while India’s Nifty 50 and Sensex indices gained 0.56% and 0.54%, respectively.
Asian tech firms linked to Apple’s supply chain also saw gains after the company unveiled new iPhones, Apple Watches, and AirPods. Taiwan’s Foxconn rose 1.2%, and Samsung Electronics increased 1.4%, although Apple’s shares fell 1.48% on investor caution over its latest product lineup. Indonesia’s Jakarta Composite Index rebounded 1.06%, recovering from a three-day losing streak following the unexpected dismissal of Finance Minister Sri Mulyani Indrawati. The Indonesian rupiah strengthened slightly to 16,446 per dollar.
U.S. markets continued to influence Asia, with all three major benchmarks closing at record highs overnight. The S&P 500 gained 0.27%, the Nasdaq Composite rose 0.37%, and the Dow Jones Industrial Average jumped 0.43%, supported by a surge in UnitedHealth shares. Traders are now watching upcoming U.S. inflation data closely, as the markets price in expectations for potential rate cuts, setting the tone for global equities in the days ahead.
source: cnbc