Asian stocks surge on Fed rate cut expectations

Most Asian stock markets rose on October 16, as investors weighed the latest developments in the US-China trade war and expectations that the US Federal Reserve will continue to cut interest rates this year.

Stock index board in Jakarta, Indonesia. Photo: THX/TTXVN

At the close of the session, the Nikkei 225 index in Tokyo rose 1.3% to 48,277.74 points, while the Shanghai Composite index in Shanghai rose 0.1% to 3,916.23 points. Markets in Sydney, Seoul, Wellington, Taipei, Mumbai and Bangkok also rose, as traders focused on the possibility of further rate cuts by the Fed.

The Federal Reserve's Beige Book survey of the US economy pointed to a weakening labor market, similar to a series of recent poor data releases, which has strengthened the case for a Fed rate cut.

However, mixed developments surrounding the US-China trade tensions are still holding the market back. This session, the Hang Seng Index in Hong Kong (China) was almost flat at 25,908.16 points, while the markets in Singapore and Jakarta fell.

US President Donald Trump added to the market uncertainty with comments that the two countries were in a trade war, while US Treasury Secretary Scott Bessent struck a more conciliatory tone, suggesting the possibility of extending the tariff truce while the two sides seek to resolve their disagreement over rare earths.

Mr. Bessent said all of that would be discussed in the coming weeks, before the leaders meet in South Korea for the Asia- Pacific Economic Cooperation (APEC) summit. He had previously told CNBC that President Trump still planned to meet with Chinese President Xi Jinping, despite concerns that the recent flare-up in tensions could affect the meeting.

In a note, Mr. Stephen Innes of SPI Asset Management commented that the above mixed developments both brought anxiety and a sense of relief to the market.

In Vietnam, at the end of this session, the VN-Index increased by 8.9 points, or 0.51%, to 1,766.85 points, while the HNX-Index added 0.96 points, or 0.35%, to 277.08 points.

Source: https://baotintuc.vn/thi-truong-tien-te/da-tang-ap-dao-tren-thi-truong-chung-khoan-chau-a-truoc-ky-vong-fed-ha-lai-suat-20251016162214396.htm