Asian Stocks Rise, Is This a Signal for the Bull Market to Start Again?
Asian stocks rose on Friday (6/28) following the strengthening of global equities to hit record highs, as geopolitical tensions eased and expectations of interest rate cuts by the Federal Reserve this year increased. Indexes in Japan, South Korea, and Australia moved positively after the S&P 500 approached a new record high and the Nasdaq 100 managed to reach it. MSCI global stocks also hit a record, driven by a surge in the technology index and market player optimism.
This positive sentiment emerged after US economic data showed weakening household consumption and a 0.5% annualized GDP decline. On the other hand, mixed labor data: initial jobless claims fell, but continuing claims rose to their highest level since 2021. This strengthened investor confidence that the Fed would ease its monetary policy. The swap market is now pricing in two to three interest rate cuts this year.
The movement across assets suggests that investors are starting to shift their focus from short-term concerns, such as geopolitical conflicts and tariffs, to the direction of central bank policy and economic health. WTI oil has continued to gain modestly over the past three days, reflecting relative stability in the Middle East. In Asia, the yen weakened after Tokyo inflation slowed. Markets in Indonesia and Malaysia were closed, while attention turned to the release of Philippine trade data and Chinese industrial profits.
Source: (ayu-newsmaker)
