© Reuters.
TOKYO – Asian stock markets rallied on Wednesday as optimism spread among investors following signs of a slowing US labor market, which could lead to potential Federal Reserve rate cuts in early 2024. The anticipation builds ahead of Friday’s non-farm payrolls report, which is expected to provide further insight into the central bank’s efforts to decelerate the economy.
Markets across Asia responded positively to the soft US labor data, with Tokyo’s and Sydney’s stock exchanges leading the regional gains. Cities like Singapore and Seoul also saw their markets advance. This surge came despite a mixed performance from Wall Street Tuesday and Moody’s (NYSE:) recent downgrade of China’s credit outlook due to concerns over debt accumulation and the troubled property sector.
In the oil sector, crude prices experienced a modest rebound from a five-month low despite ongoing worries that high US exports could counteract Saudi Arabia’s commitment to cut production with other producers.
Cryptocurrency markets witnessed retracting slightly after surpassing the $44,000 mark. The dip followed a period of bullishness fueled by prospects of wider trading approval in the United States.
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