Asian Markets Climb Further as Soft US Economic Data Boosts Expectations of Rate Cuts

Asian equities strengthened further on Wednesday, extending a global market rebound after fresh, weaker-than-expected US economic figures boosted expectations of another Federal Reserve rate cut next month. Sentiment was also lifted by reports that President Donald Trump’s chief economic adviser is currently favoured to lead the Federal Reserve when Jerome Powell’s term ends, adding momentum to risk appetite after recent market hesitation.

Investor confidence has grown this week as several Federal Reserve officials signaled support for a third consecutive rate reduction in December, with labour-market concerns now outweighing inflation pressures. Newly released US data — delayed by the government shutdown — further strengthened the case for monetary easing. Figures showed that private employers shed an average of 13,500 jobs weekly in the four weeks to November 8, retail sales slowed more than forecast in September, and consumer confidence fell to a seven-month low as households voiced deeper concerns about job security and income prospects.

Wholesale inflation rose in September, though broadly in line with expectations, largely driven by higher goods prices — a sign of rising cost pressures for businesses. Market analysts noted that even outdated economic reports influenced trading sentiment due to the current scarcity of fresh macroeconomic indicators.

The outlook for looser policy was reinforced by reports that Kevin Hassett, head of the White House National Economic Council and a strong supporter of lower interest rates, is a leading contender for the Fed chair role. Analysts believe that if appointed, he could advance the administration’s push for more aggressive rate cuts.

Wall Street recorded a third straight session of gains, and major Asian indices followed suit. Seoul surged more than two percent, Tokyo rose 1.9 percent, while Taipei, Hong Kong, Sydney, Singapore, Mumbai and Wellington also advanced. Shanghai, Jakarta and Bangkok, however, slipped.

The rebound comes after earlier caution in November, driven by concerns over tech-sector valuations and the long-term sustainability of investment in artificial intelligence. Corporate earnings also influenced sentiment, with Alibaba shares falling after profit declined due to increased spending on consumer subsidies and data-centre development.

Market snapshot (07:05 GMT):

• Tokyo Nikkei: +1.9%
• Hong Kong Hang Seng: +0.4%
• Shanghai Composite: -0.2%
• Euro/US dollar: $1.1585
• West Texas Intermediate crude: +0.3% to $58.13
• Brent crude: +0.3% to $62.66
• Dow Jones (previous close): +1.4%
• FTSE 100 (previous close): +0.8%