Asian Stocks Rise, Yen Strengthens on Prospect of Fed Rate Cuts

Asian stocks rose for a third consecutive session, boosted by Federal Reserve Chair Jerome Powell`s indication that the Fed is likely to begin cutting interest rates. Powell`s comments, made at the Jackson Hole economic symposium, were interpreted as dovish, signaling a shift towards monetary easing. This positive sentiment also strengthened the yen against the dollar. While Japanese stocks dipped due to the strong yen, global markets reacted favorably, with equities nearing all-time highs and investors moving into sovereign debt. This market reaction reflects the anticipation of lower US borrowing costs and a potential easing cycle by the Fed. However, geopolitical tensions in the Middle East, particularly after an Israeli strike on Hezbollah targets in Lebanon, are also influencing market movements, driving up oil prices and contributing to haven buying.