Asian stocks posted modest gains at the open after Wall Street hit fresh highs ahead of an expected Federal Reserve interest-rate cut this week.
Shares in Japan, Australia and South Korea opened higher, with the MSCI Asia-Pacific Index hovering near its record high. S&P 500 contracts were steady, as a $14 trillion record-breaking run in US equities headed for an inflection point, with the expected rate cut set to dominate a week that will shape policy for half of the world’s 10 most-traded currencies.
Bets on Fed easing sent the S&P 500 above 6,600 on Monday, while the Nasdaq 100 posted its longest advance since 2023. Also aiding sentiment was a framework deal to keep TikTok running in the US, with President Donald Trump saying he’d talk to China’s Xi Jinping on Friday.
A gauge of the dollar steadied after sliding in the prior session. Gold held its gains after rising to a new record.
Signs of labor-market weakening and no major inflation surprises have sealed the deal for what money markets project will be a quarter-point Fed cut in September. The big question, though, will be the pace of easing after that, with prices stubbornly above the central bank’s 2% target.
“Now the discussion will turn to how aggressively the Fed will act,” said Chris Larkin at E*Trade from Morgan Stanley. “The Fed may remind everyone that it may be focused on jobs now, but it hasn’t forgotten about the other half of its mandate.”