Asian Stocks Weaken as Fed Policy Doubts Simmer
Asian stocks dipped early Monday as traders reined in expectations of Federal Reserve interest rate cuts following fresh signs of US economic resilience.
Japanese and Australian shares fell. South Korea’s benchmark bucked the trend, led by Samsung Electronics Co.’s rally after it announced a stock buyback plan. US futures gained, after the S&P 500 slid 1.3% on Friday to erase more than half of its gains following the US election.
A soft start risks extending last week’s global selloff as investors price the prospect of Donald Trump’s tariffs and tax cuts potentially reigniting inflation in an already robust US economy. A report Friday on October US retail sales that included large upside revisions also aided bets that the Fed may pause its easing cycle in 2025, with the odds of a rate cut next month now seen as less than a coin toss.
Source: Bloomberg