Asian Stocks Climb as Soft U.S. Data Fuels Fed Rate-Cut Hopes

Asian equity markets pushed higher today, with investors reacting positively to weaker-than-expected U.S. economic data — notably sluggish retail sales and cooling consumer confidence — which boosted expectations that the Federal Reserve will cut interest rates in December.

Major indexes rallied broadly: the MSCI Asia-Pacific index (ex-Japan) rose about 1.1%, and Japan’s Nikkei 225 Index surged around 1.9%. Concurrently, futures for U.S. equities climbed, hinting that the rally could spill over once the U.S. market reopens after Thanksgiving. 

Investors appear encouraged by renewed hopes that the Fed may act sooner than previously expected, supporting risk-on sentiment across global markets. At the same time, bond yields remain near 4%, gold regained ground, and Bitcoin recovered modestly — signaling a broader return of risk appetite.

What to Watch:

• Confirmation that the Fed will balance weak economic data with policy easing — upcoming statements and global macro releases could shift sentiment again.

• Equity sectors tied to global growth, particularly cyclical and export-oriented plays, likely to lead the rally if risk-on mood sustains.

• Monitor bond yields and dollar strength: rate expectations continue to influence flows across currencies, commodities, and risk assets.