BUSINESS – Global markets rallied on Thursday as investors bet that Federal Reserve (Fed) will slash interest rates next month, sparking renewed optimism after recent volatility. Share prices across Asia climbed, with the regional index and Japan’s stock market leading the way, while the softer tone in the U.S. dollar helped support risk-on sentiment.
In detail, Asia-Pacific equities outside Japan edged up about 0.4 percent, reflecting a rebound from a three-week losing streak. Japan’s Nikkei rose by over 1 percent, giving markets extra momentum despite muted signals from European futures. Stock markets benefited from comments by Fed officials that reinforced expectations for an imminent rate cut, especially after U.S. economic data remained sparse or stale in the aftermath of the government shutdown.
Risk appetite returned briskly, buoying not only equities but also assets like Bitcoin, which climbed back above $90,000 — a sign that investors are once again reaching for returns in higher-volatility markets.
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On currencies and fixed income, the U.S. dollar weakened slightly amid rate-cut speculation, while the Japanese yen came under renewed pressure. That depreciation renewed talk of potential intervention by Japanese authorities. Meanwhile, bond markets remained calm, with U.S. Treasury yields steady, supporting the broader optimism around global growth and equity performance.
Not all corners of the market shared the enthusiasm: sentiment toward the Chinese real estate sector stayed fragile after reports that major developer China Vanke sought to delay repayment of a large on-shore bond. That put downward pressure on property-related shares even as the broader market advanced.
Overall, the markets appear to be embracing a renewed sense of calm and opportunity — investors are gravitating back toward riskier assets, buoyed by softening monetary-policy expectations and a prevailing belief that central banks worldwide may pivot toward stimulus.
