Asian Markets Climb on Fed Cut Hopes

Asian markets rise on Fed rate cut hopes as US job data weakens; Nikkei and ASX gain while Shanghai and Hang Seng retreat.

Asian equities traded mostly higher on Thursday as growing expectations of a U.S. Federal Reserve rate cut lifted sentiment, despite mixed performance across the region and weakness in commodities.

Investor optimism was fueled by fresh labor market data from the United States. The latest JOLTS report showed job openings easing to 7.18 million in July, the lowest in ten months and below expectations of 7.38 million. The figures reinforced views that cooling labor conditions could prompt the Fed to deliver a rate cut at its September meeting. According to CME Group’s FedWatch Tool, markets are now pricing in a 95.4% chance of a quarter-point cut, up from 88.7% just a week ago.

Japan’s Nikkei 225 rose 1.54% to 42,456.16, led by strength in technology and exporter stocks. SoftBank surged more than 4%, while Sony gained nearly 3%. However, Nidec plunged almost 17%, limiting broader gains.

Asian Markets Climb on Fed Cut Hopes

Australia’s S&P/ASX 200 climbed 0.98% to 8,817.70, snapping four straight sessions of losses. Mining and banking stocks provided strong support, with Rio Tinto and Fortescue up over 2% each and NAB and Westpac adding more than 2%. Tech firm Xero outperformed, jumping more than 4%. Energy shares lagged, with Woodside Energy sliding nearly 2%.

Elsewhere, the Shanghai Composite slipped 1.32%, while Hong Kong’s Hang Seng shed 1.11%. Taiwan stocks gained more than 1%, helping offset some regional weakness.

Overnight in New York, the Nasdaq advanced 1% and the S&P 500 added 0.5%, though the Dow Jones Industrial Average closed slightly lower. European markets also ended higher, supported by rate-cut hopes and positive earnings updates.

Commodities retreated, with gold down 1.31% at $3,587.75 an ounce and silver off 1.60% at $41.388. Oil prices also weakened amid oversupply concerns ahead of the upcoming OPEC meeting. Brent crude fell 0.68% to $67.14 a barrel, while WTI dropped 0.73% to $63.50.

In bond markets, the U.S. 10-year Treasury yield stood at 4.215%. The UK 10-year yield held at 4.7470%, while Germany’s benchmark 10-year yield was at 2.7406%.

Investors now turn to key U.S. data later in the day, including the ADP Non-Farm Employment Change (12:15 PM GMT), weekly jobless claims (12:30 PM GMT), and the ISM Services PMI (2:00 PM GMT), which could provide further clues on the Fed’s policy path.

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