Asian Stocks Rise on Fed Rate Cut Bets, Extending Global Rally

Asian stocks climbed, driven by Wall Street`s positive performance and expectations that the Federal Reserve will soon indicate interest rate cuts. This marks a nine-day winning streak for the MSCI ACWI Index, the longest since December. While Chinese shares dipped, markets in Japan, South Korea, and Australia saw gains.

The optimistic outlook stems from the US, where the S&P 500 achieved its eighth consecutive day of growth. Anticipation of the Fed`s easing policy is bolstering equity markets, despite recent volatility and economic uncertainty. This sentiment is reflected in the MSCI Asia Pacific Index`s performance, which has risen almost daily since August 6th.

Analysts attribute this trend to recent data that alleviated concerns about a US economic slowdown without raising alarm about inflation. This environment, coupled with a weaker dollar, is seen as favorable for Asian equities.

However, trading volume has decreased since a surge in early August, as investors are hesitant to make significant moves before the Federal Reserve`s Jackson Hole economic symposium. This year`s gathering of central bankers is expected to reveal more division than in recent years.