Global Markets: Fed's Dovish Tone and Bank Earnings Propel Asian Stocks Amid U.S.-China Tensions

Asian stocks rebounded modestly as Federal Reserve Chair Jerome Powell's dovish comments and strong U.S. bank earnings lifted sentiment. However, ongoing U.S.-China trade tensions limited market gains. Powell hinted at potential further rate cuts, while market analysts anticipate decreases at upcoming Federal Open Market Committee meetings.

In Asian financial markets, stocks experienced a cautious climb on Wednesday, buoyed by Federal Reserve Chair Jerome Powell's dovish remarks and positive U.S. bank earnings, though persistent U.S.-China trade tensions kept investors wary.

Powell suggested that the Fed might cease its quantitative tightening efforts soon, sparking hopes for more rate cuts this year. Approximately 48 basis points in cuts are anticipated by December, with expectations of 25 basis point reductions at both the October and December FOMC meetings.

Despite U.S. President Donald Trump's consideration of terminating some trade ties with China, market analysts continue to watch for developments, especially regarding additional tariffs proposed for November. Meanwhile, geopolitical and economic uncertainties influenced currency and commodity markets, with gold prices rising amid risk-averse sentiment.

(With inputs from agencies.)