Asian markets recover on rate cut hopes, US-China trade tensions loom
Asian stock markets bounced back this week, thanks to growing hopes that the US Federal Reserve will cut interest rates soon—possibly as early as October.
This positive vibe helped markets in Japan, South Korea, and Australia recover after a rough few days, even as US-China trade tensions continued to make headlines.
Fed Chair Jerome Powell's comments about labor market struggles fueled the optimism, with many investors now betting on more rate cuts ahead.
Fed's backing for rate cuts fuels investor optimism
Despite the trade drama, key financial signals stayed steady: the US dollar slipped a bit, oil prices hovered near five-month lows, and gold traded near its peak.
Fed officials, like Boston's Susan Collins, are openly backing more rate cuts to boost the economy and support jobs.
Investors are also watching upcoming US-China talks in South Korea closely, hoping for signs of progress while global stocks have rebounded sharply—especially in the tech sector—despite ongoing trade disputes.