Berliner Boersenzeitung - Asian markets rise as traders prepare for expected US rate cut

While the outcome of the Federal Reserve's policy decision Wednesday is considered a fait accompli, there is still a lot of discussion over its plans for future meetings and its so-called "dot plot" outlook for borrowing costs.

Bank boss Jerome Powell's post-meeting comments will also be pored over for an idea about decision-makers' thinking as the US jobs market slows and inflation remains stubbornly above target.

"Jobless claims and unemployment are at their highest since 2021, and for the first time in four years, there are more job seekers than jobs," said SPI Asset Management's Stephen Innes. "That single ratio tells the Fed all it needs to know: rate cuts are back on the runway.

"Add the housing drag -- mortgage payments nearly doubled from pre-Covid levels, affordability at record lows, rents soaring -- and you get a feedback loop that eats into consumption, profits, hiring, and confidence," Innes added.

The meeting will take place with a Trump appointee as a new member of the bank's board of governors and rate-setting Federal Open Market Committee.

Stephen Miran, who chairs the White House Council of Economic Advisers, was cleared Monday by the Republican-majority Senate.

His appointment comes as the president demands the Fed cut borrowing costs, and accusing Powell of being unfit for the job.

In early trade, Tokyo rose as investors returned from a long weekend, while Hong Kong, Shanghai, Sydney, Taipei, Manila and Jakarta were also up. Seoul chalked up another record high.

However, there were losses in Singapore and Wellington.

The broadly positive mood came after Wall Street's S&P 500 and Nasdaq also hit records.

Expectations that US rates will be culled over the next few months and possibly into 2026 continued to weigh on the dollar against its peers and pushed up gold to a new all time peak of above $3,689.

Trump said on his Truth Social network Monday that he would speak to Chinese counterpart Xi at the end of the week, stoking hopes for a further easing of tensions between the world's economic superpowers.

The US president's message came as Washington and Beijing reached a framework deal over their TikTok dispute, which the US side said will be finalised by the two leaders on Friday.

The agreement came on the second day of high-level talks between the two sides in Madrid that included discussions on the countries' trade dispute.

Trump said on social media that the talks were going "VERY WELL".

- Key figures at around 0230 GMT -

Tokyo - Nikkei 225: UP 0.3 percent at 44,904.13 (break)

Hong Kong - Hang Seng Index: UP 0.3 percent at 26,535.26

Shanghai - Composite: UP 0.1 percent at 3,866.00

Euro/dollar: UP at $1.1770 from $1.1768 on Monday

Pound/dollar: DOWN at $1.3604 from $1.3609

Dollar/yen: DOWN at 147.27 yen from 147.38 yen

Euro/pound: UP at 86.50 pence from 86.47 pence

West Texas Intermediate: UP 0.3 percent at $63.47 per barrel

Brent North Sea Crude: UP 0.3 percent at $67.65 per barrel

New York - Dow: UP 0.1 percent at 45,883.45 (close)

London - FTSE 100: DOWN 0.1 percent at 9,277.03 (close)

(G.Gruner--BBZ)