Asian Markets Rally on Interest Rate Cuts and Trade Talks

Asian stocks rose as the Federal Reserve cut interest rates and U.S.-China trade talks commenced. Financial markets await decisions from key central banks, including the Bank of Japan. Despite a recent Wall Street rally, lingering trade tensions remain. Key U.S. tech firms report mixed earnings amid expenditure concerns.

Asian markets saw a rise in stocks on Thursday morning following a significant interest rate cut by the Federal Reserve and the commencement of trade discussions between U.S. and Chinese leaders. Notably, the broadest index of Asia-Pacific shares outside Japan climbed 0.5%.

Investor attention is currently focused on a series of central bank decisions that could suggest future interest rate movements. The Bank of Japan is poised to announce its decision soon, with expectations for rates to remain steady. While the U.S.-China trade deal raises optimism, underlying tensions persist.

Amidst the global financial movements, corporate earnings and spending trends in the tech sector have ignited investor anxiety. Microsoft's AI investment reached record levels, whereas Alphabet saw a share increase following better-than-expected revenue results. Meanwhile, currency and energy markets are witnessing fluctuations, reflecting ongoing economic uncertainties.

(With inputs from agencies.)