South Korea’s Kospi advanced 1.38% to 4,167.16, supported by strength in heavy-weight automakers and semiconductor producers. The tech-focused Kosdaq inched up 0.29% to 937.34, reflecting selective interest in smaller growth names amid a rotation toward large-capitalization industrial firms.
In Australia, the S&P/ASX 200 gained 1.23% to finish at 8,697.30. Energy and materials stocks outperformed as commodity prices firmed on expectations of improving global demand. India’s Nifty 50 added 0.6%, although the rupee slipped to an all-time low of 90.55 against the U.S. dollar, highlighting divergent currency pressures even as equity investors remained optimistic.
Hong Kong’s Hang Seng Index climbed 1.75%, while mainland China’s CSI 300 increased 0.63% to 4,580.95. Buying accelerated in late trade after Beijing concluded a high-level economic planning conference with pledges to bolster consumption, stabilize the property sector and intensify support for domestic technology development. Those areas are slated to be priority pillars in the next five-year plan, which will take effect in 2026.
Wall Street Records Boost Sentiment
Overnight, U.S. equity benchmarks posted mixed but largely constructive results. The Dow Jones Industrial Average rallied 646.26 points, or 1.34%, to 48,704.01, notching both closing and intraday records. The S&P 500 edged up 0.21% to 6,901.00, also a new high, while the Nasdaq Composite slipped 0.26% to 23,593.86 as investors rotated out of high-growth technology shares and into companies seen as beneficiaries of a stronger domestic economy.
Market participants cited the Fed’s rate cut as a catalyst for the shift, arguing that lower financing costs could spur consumer spending, corporate investment and, ultimately, earnings growth in cyclical industries. Financials, industrials and consumer discretionary names outperformed technology megacaps in both the U.S. and Asia sessions.
Currency and Rate Dynamics
The weakening of the Indian rupee against the dollar underscored divergent monetary conditions across emerging markets. While the Fed’s move signaled a slightly more accommodative stance in the world’s largest economy, several Asian central banks remain focused on managing inflationary pressures and currency stability. Analysts noted that further U.S. rate adjustments, or a change in expectations for global growth, could influence capital flows into and out of the region.
Sovereign bond yields in Asia largely mirrored U.S. Treasurys, drifting lower as investors anticipated a more supportive policy backdrop. However, market screens showed limited demand for longer-dated paper, suggesting some caution about the durability of the current rally.
Outlook
With the Fed’s latest policy action now digested, attention in the coming week is expected to shift to economic data releases, including U.S. non-farm payrolls and China’s official purchasing managers’ indexes. Traders will also monitor corporate earnings guidance for signs that lower borrowing costs are translating into stronger order books and improved margins.
For now, equity markets in the Asia-Pacific region appear to be drawing confidence from Wall Street’s strength and the prospect of continued monetary support. Whether that momentum endures will likely depend on the interplay between global growth indicators, central bank messaging and currency swings.
Crédito da imagem: Kiyoshi Ota/Bloomberg via Getty Images
