Hang Seng Hits Monthly High, What Signals for Asian Markets?
Asian stock markets, particularly in Hong Kong, surged on hopes that the United States would soon cut interest rates. This news came after data showed the US labor market weakened last month, increasing the chances of the Federal Reserve (the US central bank) lowering interest rates at its next meeting in December. Interest rate cuts are usually good news for the stock market as they can stimulate economic growth and investment.
The Hang Seng Index in Hong Kong rose around 1 percent, reaching its highest level in a month. Major stocks such as Shenzhou International Group and China Hongqiao Group experienced significant gains, while technology giant Tencent and major bank HSBC also recorded gains. Meanwhile, stock exchanges in Japan, South Korea, and Australia also moved higher, following this positive trend.
Market optimism was also fueled by news that the longest US government shutdown in history may soon end. If confirmed, this would reopen government agencies and allow for the release of important economic data. Investors are now awaiting the Fed's next move, hoping that lower interest rates will accelerate the global economic recovery. (az)
Source: Newsmaker.id
