HONG KONG: Stocks jumped on Wednesday as trade war fears were overshadowed by comments from Federal Reserve Chairman Jerome Powell, who suggested the bank would cut interest rates again this month.&nbsp;After a volatile couple of days characterized by a fresh flare-up in China-US tensions, investors took the opportunity to jump back into the market and resume a months-long, tech-fuelled rally.&nbsp;Powell has for most of the year walked a fine line between trying to keep a cap on US inflation while also supporting the labor market, even as he faced a barrage of abuse from President Donald Trump for not lowering borrowing costs soon enough.&nbsp;And while price gains continue to outpace the bank&#39;s target pace, a series of weak readings has forced him to turn his focus on jobs, and last month announced the first rate cut since December.&nbsp;And on Tuesday, he indicated more were on the way.&nbsp;&quot;In this less dynamic and somewhat softer labor market, the downside risks to employment appear to have risen,&quot; said Powell, adding that longer-term inflation expectations remained aligned with the Fed&#39;s two-percent goal.&nbsp;&quot;Rising downside risks to employment have shifted our assessment of the balance of risks,&quot; he said, adding there was &quot;no risk-free path for policy as we navigate the tension between our employment and inflation goals.&quot;&nbsp;Powell also hinted that monetary policymakers could soon stop reducing the size of its holdings of bonds and other instruments bought in vast quantities during the pandemic to keep borrowing rates low and support the economy.&nbsp;The bank has a dual mandate from Congress to act independently to tackle both inflation and employment.&nbsp;No official jobs data has been published for September because of the US government shutdown, but private sector figures point to a marked slowdown in hiring last month.&nbsp;US markets ended mostly down but well off their morning lows, and Asia was on the front foot.&nbsp;Hong Kong, Tokyo, Taipei and Seoul all climbed more than one percent, while Sydney, Seoul, Singapore and Wellington also advanced.&nbsp;Shanghai rose, with little negative reaction to data showing Chinese consumer prices fell in September, indicating consumer sentiment remains weak.&nbsp;Powell&#39;s remarks helped investors turn from the latest trade salvos between Washington and Beijing, with Trump last week threatening 100-percent tariffs owing to Chinese rate-earth measures.&nbsp;While the US president tempered his rhetoric Sunday, China appeared to stoke the row by imposing sanctions on five American subsidiaries of South Korean shipbuilder Hanwha Ocean, accusing them of supporting Washington&#39;s investigation into the shipping industry.&nbsp;Still, there are hopes the row can be defused, with Trump telling reporters at the White House that &quot;we have a fair relationship with China, and I think it&#39;ll be fine. And if it&#39;s not, that&#39;s OK too.&quot;&nbsp;&quot;We have a lot of punches being thrown, and we&#39;ve been very successful.&quot;&nbsp;Meanwhile, US Trade Representative Jamieson Greer told CNBC that senior officials had spoken on Monday about the rare earth dispute and gave a broadly upbeat view.&nbsp;&quot;We&#39;ve been pretty successful in finding a path forward with them in the past, so we think we&#39;ll be able to work through it,&quot; he said in an interview.&nbsp;Key figures at around 0230 GMT&nbsp;Tokyo - Nikkei 225: UP 1.3 percent at 47,463.31 (break)&nbsp;Hong Kong - Hang Seng Index: UP 1.5 percent at 25,826.42&nbsp;Shanghai - Composite: UP 0.4 percent at 3,881.03&nbsp;Euro/dollar: UP $1.1621 from $1.1604 on Tuesday&nbsp;Pound/dollar: UP at $1.3348 from $1.3319&nbsp;Dollar/yen: DOWN at 151.17 yen from 151.74 yen&nbsp;Euro/pound: DOWN at 87.06 pence from 87.13 pence&nbsp;West Texas Intermediate: FLAT at $58.71 per barrel&nbsp;Brent North Sea Crude: FLAT at $62.40 per barrel&nbsp;New York - Dow: UP 0.4 &nbsp; percent at 46,270.46 (close)&nbsp;London - FTSE 100: UP 0.1 percent at 9,452.77 (close)

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After a volatile couple of days marked by a fresh flare-up in China-US tensions, investors seize the opportunity to re-enter the market and resume a months-long, tech-fueled rally.

Asian markets rally as Fed cut hopes trump trade war fears

Reuters

SINGAPORE: Asian stocks stumbled on Tuesday, as signs the US and China were preparing for trade talks later this month were tempered by uncertainty over whether the two nations could strike a durable deal.&nbsp;Early gains for MSCI&#39;s broadest index of Asia-Pacific shares outside Japan. MIAPJ0000PUS and the S&amp;P 500 futures ESc1 petered out to trade flat. Markets had earlier joined the rebound from Monday&#39;s cash session after US Treasury Secretary Scott Bessent told US President Donald Trump remains on track to meet Chinese leader Xi Jinping in South Korea in late October.&nbsp;Wall Street&#39;s main indexes ended as much as 2.2% higher overnight, led by chipmakers, after Trump struck a more conciliatory tone on trade tensions with China.&nbsp;Global equities had abruptly turned red on Friday after Trump announced 100% tariffs on China, reviving memories of the market volatility after April&#39;s &quot;Liberation Day&quot; announcement. The selloff only halted after the US president cooled his rhetoric on his Truth Social network.&nbsp;Citi analysts wrote in a research report that they do not expect an escalation of trade tensions between Beijing and Washington.&nbsp;&quot;The reason is not so much the reassuring President Trump tweet over the weekend, but the fact that China may be the only country with bargaining power, where the US may have to be more flexible in its negotiation stance.&quot;&nbsp;But a spokesperson for China&#39;s commerce ministry said on Tuesday the US cannot seek talks while also making threats, keeping markets on edge over the chances for a broader trade deal.&nbsp;The US and China on Tuesday will begin charging port fees on ocean shipping firms that move everything from holiday toys to crude oil, making the high seas a key front in the trade war between the world&#39;s two largest economies.&nbsp;After early gains in Hong Kong, the Hang Seng Index. HSI fell 0.4%, while in the mainland, the CSI 300 gauge of blue-chip Chinese stocks. CSI300 slipped 0.1%.&nbsp;Asian stocks were led by a 0.8% surge in Taiwan&#39;s market. TWII as TSMC 2330.TW rose to a record, after OpenAI said it has partnered with Broadcom AVGO.O to produce its first in-house artificial intelligence processors.&nbsp;South Korea&#39;s Kospi index. KS11 gained 0.6% after Samsung Electronics 005930.KS on Tuesday projected a 32% rise in third-quarter operating profit from a year earlier, beating analysts&#39; estimates as demand for conventional memory chips helped offset the company&#39;s weaker high-bandwidth memory chip sales.&nbsp;Japan&#39;s Nikkei stock index. N225 fell 1.2% as the country&#39;s markets reopened after a holiday. Against the yen, the US dollar was little changed at 152.31 yen.&nbsp;The dollar index, which measures the greenback&#39;s strength against a basket of six currencies, was trading 0.1% lower at 99.246.&nbsp;Traders continue to expect easing from the Federal Reserve later this month is a near-certainty. Pricing of Fed funds futures implies a 96.7% probability of a 25-basis-point cut to interest rates at the Federal Open Market Committee&#39;s meeting on October 29, compared with a 98.3% chance a day earlier, according to the CME Group&#39;s FedWatch tool.&nbsp;The euro was barely moved at $1.1571 after French President Emmanuel Macron rejected calls to resign on Monday, as his latest government was threatened by two no-confidence motions that could bring it down by the end of the week.&nbsp;Brent crude LCOc1 was last up 0.2% at $63.45 per barrel after an OPEC report on Monday showed world oil supply is expected to closely match demand next year as the wider OPEC+ group increases production, marking a change from last month&#39;s outlook, which projected a supply shortfall in 2026.&nbsp;Gold gained 1.1% to $4,155.90 per ounce, showing little sign of pausing for breath as precious metals continue to set records.&nbsp;Bitcoin fell 1.9% to $113,629.29, while ether slipped 3% to $4,161.79.

Asian markets hesitant as investors wary of US-China trade tensions

HONG KONG: Most Asian markets rose Monday, tracking gains on Wall Street, following US inflation figures that met expectations and soothed concerns about Donald Trump&#39;s latest tariff salvo.&nbsp;However, investors were keeping a wary eye on Washington, where lawmakers have failed to reach a funding compromise to keep the government running, which observers say could affect the release of key data.&nbsp;All three main indexes in New York ended in the green on Friday, snapping three straight losses following news that the Federal Reserve&#39;s preferred gauge of inflation rose in line with expectations, giving the bank room to cut interest rates again.&nbsp;While the 2.7 percent reading on the August personal consumption expenditures (PCE) index was up from 2.6 percent in July and well above the Fed&#39;s two percent target, policymakers are focusing on supporting the labor market after a string of weak jobs readings.&nbsp;Their cut earlier this month &mdash; the first since December &mdash; came as a closely watched guide indicated two more were in the pipeline before January.&nbsp;Attention now turns to the key non-farm payrolls (NFP) report due Friday.&nbsp;However, there are concerns that could be postponed by a possible government shutdown this week as US politicians struggle to reach a funding deal, with some analysts suggesting the Labor Department could be hit.&nbsp;With a deadline for a deal coming on Tuesday, congressional leaders on both sides are due to meet President Trump to try to resolve the issue, which could see some key services closed down.&nbsp;Hakeem Jeffries, the Democratic House leader, said on ABC that he was &quot;hopeful&quot; that a deal could be struck before the Tuesday cutoff.&nbsp;His colleague Chuck Schumer, the Democrats&#39; Senate leader, echoed that guarded optimism and said any potential breakthroughs would depend on Trump&#39;s Republicans.&nbsp;Trump has struck a defiant tone in pushing for his own agenda and last week cancelled a meeting to discuss the stalemate with senior opposition leaders, which will instead take place on Monday.&nbsp;&ldquo;If we hear early this week that the NFP report will be delayed (potentially until the govt re-opens), traders may recalibrate their approach to risk and increase their sensitivity to&rdquo; other jobs figures, said Pepperstone&#39;s Chris Weston.&nbsp;And economists at Bank of America warned that the longer the row went on, the more painful it would be for the world&#39;s top economy.&nbsp;&quot;The economic effects of a shutdown are typically modest and short-lived. Though the drag grows with the length of the shutdown, and potential federal layoffs could have more lasting effects,&quot; they wrote.&nbsp;Still, investors in most markets were in a positive mood, building on Wall Street&#39;s gains.&nbsp;Hong Kong and Seoul led the way, rising more than one percent each, while Shanghai, Sydney, Singapore, Wellington, Manila and Jakarta also advanced.&nbsp;Tokyo slipped, though the finance arm of Sony soared more than 30 percent on its debut after being spun off by the tech titan to focus on its entertainment and image sensor business.&nbsp;Sony Financial Group rocketed to as much as 210 yen in the morning, from the 150 yen it was set at last week.&nbsp;Oil prices sank on speculation OPEC+ will increase output, fanning concerns of a glut. The drop followed last week&#39;s rally on the back of mounting tensions between NATO countries and Russia, increasing the possibility of fresh sanctions on Moscow.&nbsp;Key figures at around 0230 GMTTokyo - Nikkei 225: DOWN 1.0 percent at 44,892.52 (break)&nbsp;Hong Kong - Hang Seng Index: UP 1.5 percent at 26,506.83&nbsp;Shanghai - Composite: UP 0.1 percent at 3,833.33&nbsp;Euro/dollar: UP at $1.1725 from $1.1701 on Friday&nbsp;Pound/dollar: UP at $1.3431 from $1.3405&nbsp;Dollar/yen: DOWN at 148.96 yen from 149.51 yen&nbsp;Euro/pound: DOWN at 87.28 pence from 87.30 pence&nbsp;West Texas Intermediate: DOWN 0.8 percent at $65.19 per barrel&nbsp;Brent North Sea Crude: DOWN 0.7 percent at $69.65 per barrel&nbsp;New York - Dow: UP 0.7 percent at 46,247.29 (close)&nbsp;London - FTSE 100: UP 0.8 percent at 9,284.83 (close)

A man walks on Wall St. outside the NYSE in New York

Investors are keeping a wary eye on Washington, where lawmakers have failed to reach a funding compromise to keep the government running, which observers say could affect the release of key data.

Articles tagged with "Asian markets"

Asian markets rally as Fed cut hopes trump trade war fears

Asian markets hesitant as investors wary of US-China trade tensions

Most Asian markets track Wall Street higher after US inflation data