Asian shares mostly advanced Tuesday as investors grew more confident that the Federal Reserve will lower interest rates at its upcoming meeting.
Japan’s Nikkei 225 edged up 0.3% to 43,763.96, while South Korea’s Kospi gained 0.6% to 3,238.07. Hong Kong’s Hang Seng surged 1.2% to 25,949.48, and China’s Shanghai Composite rose 0.1% to 3,831.45. By contrast, Australia’s S&P/ASX 200 slipped 0.5% to 8,806.60.
“Asian markets opened with momentum, riding Wall Street’s conviction that Fed cuts are no longer a question of if but how many. Nearly three reductions are now being priced before year-end,” said Stephen Innes of SPI Asset Management.
On Wall Street, optimism helped push the S&P 500 up 0.2%, just below last week’s record. The Dow Jones Industrial Average climbed 114 points, or 0.3%, while the Nasdaq Composite rose 0.5% to a new all-time high.
Tech firms AppLovin and Robinhood Markets, along with Emcor Group, gained after news they will join the S&P 500 index later this month. Entry into the benchmark index often boosts stocks, as many investment funds track or benchmark against it, funneling new investor inflows.