Asian Stocks Rally on Fed Rate-Cut Bets; Dollar Eases, Gold Firms

Asian shares tracked Wall Street higher Friday as expectations of rapid U.S. rate cuts lifted sentiment, easing bond yields and weighing on the dollar. Japan’s Nikkei rose 1% to another record, South Korea’s KOSPI gained 1.3%, and Chinese stocks hit a 3-1/2 year high on AI optimism.

S&P 500 and Nasdaq futures held near record peaks, while European futures edged up 0.2%. Markets are pricing a 100% chance of a Fed cut next week, with Citi expecting 125 bps of easing over the next five meetings.

The euro steadied at $1.1728 after the ECB signaled policy is “in a good place,” while the yen traded around 147.40 per dollar.

In commodities, gold rose 0.5% to $3,654/oz, close to its record high, while oil slipped on IEA forecasts of a surplus.