Asian Markets Surge as Rate Cut Bets Fuel Global Rally

Asian stock markets surged on Thursday, extending a week‑long rally that has been driven by expectations of another U.S. interest rate cut in December. Investor confidence has returned after earlier concerns about inflated technology valuations faded, and risk appetite spread across trading floors, lifting equities and even cryptocurrencies such as bitcoin.

Comments from Federal Reserve officials, coupled with weak U.S. employment data, have reinforced the belief that borrowing costs will be reduced again at the upcoming policy meeting. The Fed’s “beige book” underscored uneven consumer spending, noting that households with lower incomes are cutting back while high‑end retail remains resilient. Some retailers also reported losses tied to the record‑long government shutdown.

Markets paid little attention to data showing a decline in jobless claims, which contradicted forecasts of a slight increase. Analysts now estimate an 80 percent chance of a rate cut on December 10, with three more reductions expected in 2026—twice the earlier projections. Wall Street’s three major indexes closed higher for the fourth consecutive day on Wednesday before pausing for the Thanksgiving holiday, and Asian exchanges followed suit. Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Seoul, Taipei, and Jakarta all posted gains, while Wellington and Manila struggled.

The rally comes after earlier worries that massive investments in artificial intelligence might take years to generate returns. For now, optimism about lower interest rates is outweighing those concerns, and smaller‑cap companies are benefiting from cheaper borrowing costs. Chris Weston of Pepperstone observed that Asian traders may continue positioning for upside in U.S. equities, even with American markets closed for the holiday.

Bitcoin rebounded above $90,000 after sliding to a seven‑month low just above $80,000 earlier this month. Despite the recovery, it remains below its October peak of $126,200. In corporate developments, Japanese brewer Asahi announced delays in releasing its financial results due to a ransomware attack that began in September, which disrupted its ability to process orders and ship products. Meanwhile, South Korea’s largest cryptocurrency exchange, Upbit, is set to be acquired by tech giant Naver Financial in a deal worth more than $13 billion. Upbit ranks as the world’s fourth‑largest crypto trading platform by volume.

At 0215 GMT, Tokyo’s Nikkei 225 was up 1.3 percent at 50,203.38, Hong Kong’s Hang Seng rose 0.1 percent to 25,944.71, and Shanghai’s Composite gained 0.4 percent to 3,879.12. The euro strengthened to $1.1611 from $1.1598, while the pound climbed to $1.3256 from $1.3239. The dollar slipped against the yen to 156.08 from 156.42, and the euro eased against the pound to 87.58 pence from 87.60. Oil prices fell, with West Texas Intermediate down 0.6 percent at $58.33 per barrel and Brent crude down 0.5 percent at $62.80. In New York, the Dow Jones closed 0.7 percent higher at 47,427.12, while London’s FTSE 100 ended the session up 0.9 percent at 9,691.58.