Bloomberg Daybreak: Asia Edition Asia Stocks Higher on Fed Cut Bets
9 snips
Dec 4, 2025 Mark Cranfield, a Bloomberg Markets Live strategist, shares insights on the dollar's potential weakening as global yield differentials narrow. He also highlights South Korea's robust market driven by policy shifts and AI advancements. Adam Turnquist, Chief Technical Strategist at LPL Financial, discusses the implications of recent ISM and PCE data against the backdrop of expected Fed rate cuts. He emphasizes a bullish outlook for 2026 and the importance of focusing on ROI in AI investments, particularly in emerging markets.
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Dollar Strength Needs A Compelling Alternative
- Global yield differentials, not just Fed cuts, are keeping the dollar relatively strong for now.
- The dollar's decline will be gradual and needs a clear bullish story for the euro or yen to accelerate.
BOJ Hikes Won't Fix The Yen Quickly
- Even with a likely BOJ rate hike, Japan's real rates remain deeply negative and limit yen strength.
- Markets expect a slow, spread-narrowing process rather than a rapid yen rebound.
Surging JGB Yields Rattle Markets
- Japanese government bond yields are at multi-decade highs and causing global market unease.
- Investors are watching whether 10-year JGBs find support near 2% before returning to Japan.