Expectations of further Fed rate cuts push Asian stock markets higher

Most Asian stock markets rose on September 29, as US inflation data came in as expected, creating the basis for the US Federal Reserve to cut interest rates again and easing concerns about President Donald Trump's latest tax decision.

A screen displays the Hang Seng stock index in Hong Kong, China. Photo: THX/TTXVN

At the close, in China, the Shanghai Composite Index of Shanghai rose 0.9% to 3,862.53 points, while the Hang Seng Index of Hong Kong rose 1.9% to 26,622.88 points. The Kospi Index of South Korea rose 45.16 points, or 1.33%, to 3,431.21 points. Meanwhile, the Nikkei 225 Index of Japan fell 311.24 points, or 0.69%, to 45,043.75 points.

While the US personal consumption expenditure index increased 2.7% in August 2025, up from 2.6% in July 2025 and well above the Fed's 2% target, policymakers are focusing on supporting the labor market after a series of weak jobs data.

The Fed’s rate cut earlier this month, the first since December 2024, came as a closely watched guidance pointed to two more cuts before January 2026. The outlook has boosted investor sentiment following last week’s announcement by the US president of 100% tariffs on pharmaceuticals, large trucks, home improvement items and furniture.

Attention has shifted to the key non- farm payrolls report due on October 3. However, there are concerns that the release of the report could be delayed due to a possible government shutdown this week as politicians try to reach a deal to fund the government. With an October 30 deadline for a deal, congressional leaders from both parties will meet with President Trump to resolve the issue.

In Vietnam, at the end of the trading session on September 29, VN-Index increased by 5.78 points (0.35%) to 1,666.48 points, while HNX-Index decreased by 0.91 points (0.33%) to 275.15 points.

Source: https://baotintuc.vn/thi-truong-tien-te/ky-vong-fed-tiep-tuc-cat-giam-lai-suat-keo-cac-thi-truong-chung-khoan-chau-a-di-len-20250929165338948.htm