Asian Markets Rally as US Job Data Fuels Hopes for Fed Rate Cuts

Asian markets extended their winning streak on Wednesday, following record-breaking gains on Wall Street, as new US labor data strengthened expectations that the Federal Reserve is likely to start cutting interest rates sooner than anticipated.

Investor sentiment was boosted after the US Bureau of Labor Statistics released a significant downward revision, slashing job creation estimates for the 12 months through March by a staggering 911,000 positions, the largest such revision on record. The data adds to concerns raised by last Friday’s disappointing non-farm payroll report, signaling that the world’s largest economy may be cooling faster than previously thought.

Markets are now focused on the release of the latest Consumer Price Index (CPI) data, due later today, which analysts say could play a pivotal role in shaping the Fed’s decisions for the rest of the year.

All three major US indexes closed at all-time highs on Tuesday, and Asian equities followed suit, driven by growing investor confidence in a rate-cut cycle.

Hong Kong’s Hang Seng Index jumped 1.0%, hitting a new four-year high
South Korea’s KOSPI came close to a record amid optimism around domestic economic reforms
Tokyo, Singapore, Sydney, Taipei, Manila, and Wellington all posted solid gains
Jakarta rebounded after heavy losses on Tuesday, which followed a cabinet reshuffle by President Prabowo Subianto, who dismissed Finance Minister Sri Mulyani Indrawati after fatal anti-government protests

In contrast, Shanghai’s Composite Index posted only marginal gains. Newly released data showed China’s CPI fell back into negative territory, underlining continued weak consumer demand in the world’s second-largest economy.

There was little immediate market reaction to reports that Donald Trump, in communication with Brussels, threatened new tariffs on China and India over their purchases of Russian oil—if the EU took similar action.

Meanwhile, oil prices climbed further on escalating tensions in the Middle East, after reports of Israeli strikes on Hamas targets in Qatar sparked renewed concerns over regional instability.

Market Snapshot (as of 02:30 GMT):

Equities: