Asian Markets Surge Following Powell's Interest Rate Hints

Asian shares followed Wall Street's upward trend after Federal Reserve Chair Jerome Powell signaled potential interest rate cuts. Powell, while discussing job market risks, sparked hopes of a rate reduction amidst ongoing pressure from President Trump. Nvidia's upcoming earnings report remains a significant market focus.

Asian markets rose on Monday, echoing gains on Wall Street after the Federal Reserve's Chair, Jerome Powell, suggested interest rate cuts might occur soon. Powell's comments, delivered at the annual Jackson Hole conference, highlighted risks to the job market and influenced trader expectations for a rate cut in September.

In response, markets like Hong Kong's Hang Seng and the Shanghai Composite experienced notable climbs, even amid concerns about higher tariffs and domestic demand. This week, attention shifts to Nvidia's earnings report set for Wednesday, as it plays a pivotal role in the chip supply for AI technologies.

Despite hopes for lower rates and investment boosts, Powell remained cautious without committing to a timeline. U.S. indices, including the S&P 500 and the Dow Jones Industrial Average, recorded significant increases, driven by gains in smaller company stocks reliant on borrowing.

(With inputs from agencies.)