Asian stocks climb after Wall Street rallies on hopes for lower interest rates

Asian Stocks Rise Following U.S. Market Rally

By Elaine Kurtenbach, The Associated Press
Posted November 26, 2025

Asian markets advanced Wednesday after Wall Street posted solid gains on optimism that the U.S. Federal Reserve may soon start cutting interest rates.

Market Overview

Tokyo’s Nikkei 225 jumped 1.3% to 39,820.56, while Seoul’s Kospi added 0.9% to 2,699.47. In Hong Kong, the Hang Seng index gained 1.8% to 17,900.12, and the Shanghai Composite rose 0.5% to 3,060.64. Sydney’s S&P/ASX 200 inched up 0.3% to 7,130.88.

Investors were encouraged by economic data suggesting U.S. inflation continues to ease, fueling hopes that high borrowing costs could start to decline in 2026.

Wall Street Performance

The S&P 500 gained 1.1%, the Dow Jones Industrial Average rose 0.8%, and the Nasdaq composite advanced 1.4%. Technology stocks led the upturn, with major chipmakers and software firms posting strong performances.

Economic Context

Analysts noted that traders are increasingly betting on a potential interest rate cut by mid-2026. Rob Carnell, head of Asia-Pacific research at ING, said in a note:

“The markets are pricing in a softer stance from the Fed, which could support growth in both developed and emerging economies.”

Oil prices remained stable, while the U.S. dollar weakened slightly against the yen, easing pressure on regional exporters.

Outlook

Markets across Asia are expected to stay volatile as investors balance optimism about rate cuts with ongoing concerns over global economic growth and geopolitical tensions.

Author’s summary:
Asian markets strengthened on investor optimism over possible U.S. rate cuts, mirroring Wall Street’s rally and driven by easing inflation expectations.

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CityNews Halifax CityNews Halifax — 2025-11-27

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