Asian stocks rise on expectations of Fed rate cut

Asian stocks rebounded strongly in the morning session on October 15, as trade war concerns were overshadowed by comments from US Federal Reserve Chairman Jerome Powell, suggesting that another interest rate cut this month was possible.

A trader works at a securities company in Tokyo, Japan. Photo: Kyodo/TTXVN

Accordingly, as of 10:00 a.m. (Vietnam time), the Nikkei 225 index in Tokyo increased 1.3% to 47,463.31 points.

In China, Hong Kong’s Hang Seng Index rose 1.5% to 25,826.42, while the Shanghai Composite Index advanced 0.4% to 3,881.03. Investors there did not react negatively to data showing China’s consumer prices fell in September 2025 – a sign that consumer sentiment remains weak.

Taipei and Seoul both rose more than 1%. Sydney, Singapore and Wellington stocks also rose.

After a volatile few days due to renewed tensions in Sino-US relations, investors took the opportunity to return to the market and resume a months-long rally, boosted by technology stocks.

For much of this year, Mr. Powell struggled to balance U.S. inflation with supporting the labor market, even as he faced a barrage of criticism from President Donald Trump for not lowering borrowing costs sooner. And while inflation continues to outpace the Fed’s target, a recent spate of weak economic data has forced Mr. Powell to shift his focus to the labor market.

Last month, the Fed announced its first rate cut since December 2024. By October 14, Mr. Powell had signaled that further cuts were on the way as risks to the labor market appeared to have increased.

Mr. Powell's comments helped investors temporarily forget the latest trade spat between the US and China.

In the domestic market, at 10:35 a.m., the VN-Index increased by 5.72 points (0.32%) to 1,766.78 points. The HNX-Index increased by 0.38 points (0.14%) to 275.71 points.

Source: https://baotintuc.vn/kinh-te/chung-khoan-chau-a-khoi-sac-khi-ky-vong-fed-ha-lai-suat-20251015110528911.htm