Investors in Asia-Pacific markets were optimistic as they looked to extend gains from the previous session, following a rise in Wall Street overnight. The positive sentiment stemmed from expectations that the Federal Reserve will cut interest rates, providing a boost to the markets.
Reserve Bank of Australia Decision on Rates
One key focus for investors in Asia was the upcoming decision by the Reserve Bank of Australia on interest rates. The bank was set to conclude its two-day monetary policy meeting, with economists polled by Reuters expecting the RBA to maintain its benchmark lending rate at 4.35% for the fourth consecutive meeting.
Market Performance in Asia
Australia’s S&P/ASX 200 index showed a slight increase of 0.23% ahead of the RBA decision, indicating a potential fourth consecutive day of gains. South Korea’s Kospi surged by 1.6% as trading resumed after a public holiday, while the Kosdaq, which focuses on small-cap stocks, rose by 1.08%. Japan’s Nikkei 225 also saw gains of 0.96% after a holiday break, with the broader Topix index up by 0.61%.
Despite the overall positive trend in Asia-Pacific markets, futures for Hong Kong’s Hang Seng index suggested a slightly weaker open at 18,541 compared to the previous close of 18,578.3. This minor dip did little to dampen the overall optimism in the region.
The positive momentum in the markets was partly attributed to international developments, such as the announcement from Hamas that it had accepted an Egyptian-Qatari cease-fire proposal to end the war with Israel. This news boosted investor confidence, leading to gains in major indices. In the US, the Dow Jones Industrial Average recorded a fourth consecutive winning session, closing up by 0.46%. The S&P 500 and Nasdaq Composite also saw gains of 1.03% and 1.19% respectively.
The optimism in Asia-Pacific markets was driven by a combination of domestic factors, such as the RBA decision on interest rates, and international developments impacting investor sentiment. The overall trend suggested a positive start to the trading day, with hopes of continued gains in the near future.
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