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2h ago

Asia Stocks Climb on Fed Cut Bets as ASX Rebounds on Miners and Banks

Investors increased rate‑cut bets after weak private payrolls during the U.S. shutdown.

An investor monitors share market prices at a brokerage firm in Kuala Lumpur, Malaysia, August 24, 2015. REUTERS/Olivia Harris/File Photo
U.S. Dollar banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration
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Seoul-listed Samsung and SK hynix led a surge in tech firms after they signed a chip deal with US giant OpenAI

Overview

  • Australia’s S&P/ASX 200 jumped about 1.25% by midday Thursday, led by gains in materials and financials, with BHP up roughly 2% as miners and banks paced the advance.
  • ADP reported a 32,000 drop in U.S. private payrolls, and Fed funds futures shifted to price a near‑certain 25bp October cut, helping push gold to a record near $3,895 before easing to around $3,865.
  • The U.S. shutdown halted official data releases including nonfarm payrolls, while the dollar steadied after the Supreme Court set a January hearing on President Trump’s bid to remove Fed Governor Lisa Cook, keeping her in place for now.
  • The RBA kept rates on hold with a hawkish tone that lowered near‑term cut expectations, and its Financial Stability Review flagged risks from stretched equity valuations, cyber threats and China’s property and financial strains; the Australian dollar hovered near US$0.66.
  • Reports that China’s state iron‑ore buyer asked steelmakers to pause new BHP cargoes continued to unsettle the sector, even as iron ore held near US$104 a tonne and broader Asian equities rallied on tech strength tied to chip supply deals.