Asian Markets Anticipate Fed Rate Cuts Amid Caution

Asian stocks surged with expectations of a Federal Reserve interest rate cut, while the yen stayed strong on intervention concerns. A holiday-shortened week limited market movements, as AI bubble worries subsided. The Chinese property sector remained troubled, while the yen and euro showed resilience.

Asian stock markets experienced an uptick on Thursday, capitalizing on the rising anticipation of a Federal Reserve interest rate cut next month. As the yen held firm, closely watched for potential intervention, traders evaluated the chance of a rate hike before year's end.

The U.S. market closure on Thanksgiving contributed to constrained market activity, with stocks maintaining optimism and currencies seeing limited movement. Investors put aside concerns over the AI bubble that had unsettled equities earlier in November.

MSCI's broad index of Asia-Pacific shares outside Japan rose by 0.4%, drawing strength from Wall Street, setting the stage to end a three-week downturn. Meanwhile, Japan's Nikkei and South Korea's Kospi each climbed over 1%, fueled by expectations of a Fed rate cut.

(With inputs from agencies.)