AI trust and Fed rate cut expectations push Asian stocks higher

Asian stock markets rose sharply in the afternoon session of October 29, following Wall Street's record increase in the previous session.

In Japan, the Nikkei index surpassed the 50,000 point mark for the first time in the trading session on October 27, 2025. Photo: Kyodo/TTXVN

Investors expressed strong confidence in the development of artificial intelligence (AI) and expected the US to cut interest rates in the near future.

At the close, the Nikkei 225 index in Tokyo rose 2.2% to 51,307.65 points. The Composite index at the Shanghai exchange rose 0.7% to 4,016.33 points. The Hong Kong market (China) was closed for a holiday. The stock index in Seoul rose more than 1%, the index in Taipei (Taiwan) also rose more than 1%. However, the stock index in Sydney closed down.

The sharp rise came just before the Federal Reserve announced on October 29 that it would cut interest rates by another quarter point. The rally was also bolstered by growing confidence in a deal that could avert a serious trade war between the world's two largest economies , as US President Donald Trump prepares to meet Chinese President Xi Jinping in South Korea.

The strong rally was also fueled by expectations for earnings reports from big tech names like Microsoft and Meta, which are expected to be released in the coming days.

Chris Weston of Pepperstone said there was no sign of investors being concerned about tech stocks ahead of the Fed meeting, which in theory should not have a major impact on the market. It is still a technology sector where capital flows are concentrated, he said.

At the end of the trading session on October 29, VN-Index increased 5.33 points (0.32%), to 1,685.83 points; HNX-Index increased 1.26 points (0.47%), to 268.04 points.

Source: https://baotintuc.vn/thi-truong-tien-te/niem-tin-ai-va-ky-vong-fed-ha-lai-suat-day-chung-khoan-chau-a-tang-diem-20251029162304661.htm