Asia Stocks Climb as Fed Hike Bets Ease; Tech Leads — SkimNews
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- Federal Reserve Governor Christopher Waller signaled support for keeping rates unchanged if disinflation continues, reducing the probability of a September rate hike to about 50% from 63% via CME FedWatch.
- Japan's Nikkei rose 1.3% with SoftBank Group surging over 10%, though gains were capped by a yen that strengthened roughly 2.6% this week on Bank of Japan rate-hike expectations.
- South Korea's KOSPI gained 1.6%, with Samsung Electronics up 2.4% and SK Hynix up 3.7%, while Hong Kong's Hang Seng jumped nearly 2% on Alibaba (+3%) and Baidu (+4.5%).
- AI-related stocks were boosted after OpenAI launched its latest model, GPT-6 Astra, adding a fresh catalyst alongside the softer rate outlook.
- China's Shanghai Composite fell 0.4% and the CSI 300 edged down 0.2%, bucking the regional rally as domestic concerns diverged from the broader risk-on tone.
- Brent crude held above $95 a barrel, up about 7% this week, as Middle East tensions and Strait of Hormuz uncertainty kept inflation risks in focus.
- US nonfarm payrolls due later Friday, with the unemployment rate expected at 4.1%, could shift rate-hike bets in either direction depending on the print.
Why it matters: Waller's dovish tone cut September Fed hike odds from 63% to 50%, unlocking a tech rally across Asia — Nikkei +1.3%, KOSPI +1.6%, Hang Seng +2%. But China's Shanghai Composite still fell 0.4%, and Brent's 7% weekly spike above $95 means the US jobs report later Friday now carries outsized stagflation risk for the entire regional trade.
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