Asian Markets Surge Amid Fed Rate Cut Speculations

Asian stocks rose as expectations of a Federal Reserve interest rate cut grew, with the MSCI's Asia-Pacific index outside Japan up 0.27%. Japan's currency and property sector developments also impacted market outlooks. Traders priced an 85% chance of a December rate cut, while the yen fluctuated amid potential policy changes in Japan.

Asian stock markets climbed on Thursday, buoyed by increasing speculation that the Federal Reserve might cut interest rates next month. Meanwhile, the U.S. dollar remained soft, influenced by market expectations. Notably, the yen maintained a focus in foreign exchange markets as traders evaluated potential rate hikes in Japan before the year ends.

This week's trading activity has been limited due to a holiday-shortened week, with U.S. markets closed for Thanksgiving. However, MSCI's broad Asia-Pacific index outside Japan edged 0.27% higher, boosted by gains on Wall Street and poised to break a three-week losing streak. Japanese and South Korean indices also saw significant gains, and attention turned towards China's property sector amid bond repayment concerns involving China Vanke.

Despite a return of economic data post the U.S. government shutdown, investors are particularly attentive to Federal Reserve signals as prospects of a rate cut soar. CME's FedWatch indicates an 85% chance of such a move next month, in contrast to only 30% a week prior. This underscores traders' growing confidence in a policy shift, even as the dollar hovered near recent lows against major currencies.

(With inputs from agencies.)