Asian stocks mostly rose on Tuesday as optimism about a potential decline in U.S. interest rates persisted. Japan and South Korea outperformed their peers after a long weekend, with Japan’s Nikkei and South Korea’s KOSPI rising by 1.2% and 1.9% respectively. The gains were driven by softer-than-expected U.S. data and strong performances in the technology sector.
Australian stocks also saw gains, with the ASX 200 rising by 1.2% after the Reserve Bank of Australia struck a less hawkish tone than anticipated. The bank mentioned that Australian inflation may take longer to reach its target, easing concerns about further rate hikes.
While other Asian markets saw more limited gains, traders remained hopeful for potential interest rate cuts by the Federal Reserve. However, uncertainty remained as Fed officials suggested they needed more convincing that inflation was decreasing. Overall, the mood in Asian markets was cautiously optimistic, with investors awaiting more cues on U.S. rates from upcoming Federal Reserve speeches.
Vocabulary List:
- Optimism (noun): Hopefulness and confidence about the future.
- Persisted (verb): Continued firmly in a course of action in spite of difficulty or opposition.
- Outperformed (verb): To perform better than someone or something else.
- Hawkish (adjective): Showing an aggressive attitude in politics or foreign affairsespecially favoring military action.
- Cautiously (adverb): In a way that shows care and consideration before taking action.
- Cues (noun): A signal or prompt for action.
