Asian stocks climb on US rate cut signals

Asian equities opened higher on Monday, tracking Wall Street’s rebound after US Federal Reserve Chair Jerome Powell hinted at possible interest rate cuts in the coming months.

Speaking at the Fed’s annual Jackson Hole symposium, Powell acknowledged slowing employment growth while inflation remains above target, describing the situation as “unusual” and suggesting it may require a policy adjustment.

His remarks fueled expectations of a rate cut as early as September, with analysts now treating such a move as almost certain. “By hinting that the Fed could cut even without pristine inflation numbers, Powell transformed caution into conviction,” said Stephen Innes of SPI Asset Management.

Wall Street rallied sharply on Friday after the speech, with European markets also edging higher. The momentum carried into Asia, where Hong Kong’s benchmark rose 1.3 percent in early trade, while indexes in Tokyo, Shanghai, Sydney, Seoul and Taipei also posted gains.

The Fed has held rates steady at 4.25–4.50 percent since December, resisting pressure from US President Donald Trump to ease borrowing costs further. Policymakers had previously cited labor market resilience as they weighed the impact of Washington’s tariffs on the economy.

The dollar weakened against the euro, pound and yen on Monday as prospects of lower US yields dampened demand for the currency. Oil prices, meanwhile, were steady after last week’s gains linked to optimism over a possible peace deal in Ukraine.

Investors are now turning their attention to US tech giant Nvidia, which is set to release quarterly earnings on Wednesday, providing fresh insight into its aggressive push into artificial intelligence.

Key figures at around 0215 GMT

Tokyo - Nikkei 225: UP 0.7 percent at 42,933.34
Hong Kong - Hang Seng Index: UP 1.3 percent at 25,661.10
Shanghai - Composite: UP 0.7 percent at 3,854.086
Euro/dollar: DOWN at $1.1696 from $1.1722 on Friday
Pound/dollar: DOWN at $1.3493 from $1.3523
Dollar/yen: UP at 147.47 yen from 146.94 yen
Euro/pound: DOWN at 86.68 pence from 86.69 pence
West Texas Intermediate: FLAT at $63.65 per barrel
Brent North Sea Crude: FLAT at $67.71 per barrel
New York - Dow: UP 1.9 percent at 45,631.74 (close)
London - FTSE 100: UP 0.1 percent at 9,321.40 (close)