Bloomberg Daybreak: Asia Edition Asia Stocks Advance as Fed Rate Cut Lifts Mood
13 snips
Dec 11, 2025 Jeff Grills, Head of U.S. Cross Markets and Emerging Markets Debt at Aegon Asset Management, explores the implications of recent Fed rate cuts on emerging markets and outlines expectations for future easing. Christina Woon, Portfolio Manager at Eastspring Investments, shares insights on Asian equities, particularly around the AI trade and opportunities in Korea. Both guests highlight the importance of selective investment strategies in the current market landscape, reflecting on the effects of a softer dollar and tight memory chip supply.
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Fed Shifts Toward A Neutral Stance
- The Fed has moved policy toward neutral after three 25bp cuts, creating uncertainty about future easing.
- Jeff Grills says labor-market data will be the key determinant for further rate moves into 2026.
View Fed Bill Purchases As Liquidity Support
- The Fed's resumption of Treasury bill purchases aims to support overnight funding market liquidity.
- Jeff Grills advises viewing the move positively because added liquidity keeps market functioning and supports risk assets.
Dollar Weakness Favors EM Local Markets
- Dollar weakness followed the Fed cut and pushed Asian equities higher.
- Grills notes EM local markets benefit from weaker dollar, but access to financing and rates matter most.