Bloomberg Daybreak: Asia Edition Asian Equities Climb for Fourth Day on Fed Cut Hopes
21 snips
Sep 9, 2025 Carol Schleif, Chief Market Strategist at BMO Private Wealth, shares insights on how stock markets are buoyed by hopes for Federal Reserve rate cuts, with tech giants like Taiwan Semiconductor leading the charge. Gearoid Reidy, a Bloomberg Opinion columnist, sheds light on Japan's political turmoil following Prime Minister Shigeru Ishiba's resignation, discussing its implications for the economy and market dynamics. Both guests explore how these shifts are impacting investor sentiment across the Asian region.
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Markets Rally On Fed Cut Expectations
- Markets are pricing Fed easing and that optimism pushed the Nasdaq to record highs and lifted Asian shares.
- Investors expect easier policy to support corporate profits despite some end-of-session weakness in New York.
Prioritize Jobs Over One-Off Inflation Prints
- Focus more on employment data than on every CPI/PPI blip when assessing Fed moves.
- Watch nonfarm payroll revisions closely because the Fed weighs the labor side of its dual mandate heavily.
Communication Determines Market Reaction To Big Cuts
- A surprise large cut like 50bps would need careful communication to avoid spooking markets.
- If framed as preemptive stabilization, such a move could be tolerated; if framed as reaction to weakness, markets would fret.