Geo-Political Tensions Influence Global Market Trends

Asian stocks followed Wall Street's upward trend, anticipating a rate cut by the U.S. Federal Reserve amidst labor market concerns. Investment sentiment is swayed by geopolitical tensions, including Israeli actions in Qatar and Russian air activities in Ukraine. Investors eye upcoming U.S. inflation data for further insights.

Asian stock markets mirrored Wall Street's gains amidst anticipation that the Federal Reserve would cut interest rates due to a softening U.S. labor market. The rising expectations for a quarter-point rate cut next week were underscored by Tuesday's surge in gold prices, while the U.S. dollar remained firm.

Geopolitical tensions have kept investors on edge, with crude oil prices staying elevated following Israel's offensive against Hamas leadership in Qatar. Concurrently, NATO's military maneuvers in response to Russian aerial threats over Ukraine added to the market volatility.

As traders look to economic indicators, especially U.S. inflation data due this week, the monetary policy decision from the Federal Reserve takes center stage. The potential legal implications for the Fed's independence further complicate the outlook, alongside political leadership changes in Japan and France.

(With inputs from agencies.)