Asian Stocks Rise on Fed Rate Cut Bets, Yen Weakens
Asian stocks climbed to their highest level in over a year on Monday, fueled by renewed expectations of Fed rate cuts later this year. The Japanese yen weakened after a strong surge last week attributed to suspected intervention by Tokyo.
MSCI's Asia-Pacific index outside Japan reached its highest point since February 2023.
China's blue-chip index jumped 1.5%.
Chinese shares traded offshore had already posted strong gains last week.
The onshore yuan surged to a six-week high.
The rebound in Chinese markets followed the country's Politburo meeting, where policymakers pledged to increase support for the economy.
A long-awaited recovery in the Chinese economy is also gaining momentum.
Friday's U.S. nonfarm payrolls report, which came in weaker than expected, reinforced bets that Fed rate cuts would likely occur this year.
The yen gave back some of its gains on Monday after Tokyo is believed to have spent more than 9 trillion yen ($59 billion) to support its currency last week.
Economic leaders of South Korea, Japan, and China identified heightened foreign exchange market volatility as a risk factor for regional growth prospects.
In commodities, Brent futures rose 0.33% to $83.23 a barrel, while U.S. crude futures edged 0.36% higher to $78.39 per barrel. Gold gained 0.4% to $2,311.47 an ounce.