Asian Stocks Rise, Yen Strengthens as Fed Rate Cut Bets Fuel Risk Appetite

Asian stocks rose for a third consecutive session, boosted by the Federal Reserve`s signal to ease interest rates. Fed Chair Jerome Powell`s recent speech, indicating a shift towards monetary easing, positively impacted markets, particularly in Australia and Hong Kong. This dovish stance also strengthened the yen against the dollar. While Japanese stocks dipped due to the strong yen, global equities neared all-time highs, and investors favored sovereign debt, pushing down US Treasury yields. Market sentiment was also influenced by escalating tensions in the Middle East, driving haven buying and pushing oil prices higher. The anticipated Fed rate cuts, a potential turning point in its fight against inflation, are expected to weaken the dollar and bolster Asian currencies. Despite signs of cooling, the US economy isn`t expected to contract, potentially leading to a favorable environment for Asian exports and currencies.