(Bloomberg) — Asian stocks rose, spurred by the shares of commodity-related firms as the price of copper and gold both climbed to record highs. Optimism over eventual Federal Reserve interest-rate cuts supported the rally.
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The MSCI gauge of regional shares advanced for a seventh day, with the materials sector posting the biggest percentage increase. Equity indexes for Japan, China, Hong Kong and Australia all marched higher, and futures for European and the US also pointed to gains.
Investors finessing bets on the Fed finally pivoting toward rate cuts has shaped trading across financial markets in recent days. The Dow Jones Industrial Average of blue chips closed above 40,000 for the first time on Friday, and optimism about US easing helped gold surge to an all-time high on Monday.
Investors are also keeping an eye on the Middle East after a helicopter carrying Iranian President Ebrahim Raisi crashed in dense fog. Iran’s state television said there was no sign of life at the crash site. President Raisi was seen as a favorite to eventually succeed Supreme Leader Ayatollah Ali Khamenei, who is the Islamic Republic’s top authority.
Bloomberg’s dollar index was lite changed, after dropping last week after data showed inflation in April eased more than economists expected. A chorus of Fed officials are due to speak this week, including Governor Christopher Waller who is set to talk specifically about the US economy and monetary policy.
“We continue to expect the Fed to cut rates by 50 basis points this year, with more reductions in 2025 and 2026,” said Solita Marcelli, chief investment officer Americas at UBS Global Wealth Management. “This creates a benign macro environment that is supportive of our investment recommendation for quality bonds and quality stocks.”
Japan’s benchmark 10-year bond yield climbed to the highest since 2013 amid expectations that the central bank is committed to normalizing interest rates and supporting the struggling yen.
China’s latest attempt to bolster the nation’s beleaguered property market,…
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