Asian Stocks Rise as Weak US Jobs Data Boosts Fed Rate‑Cut Bets (Sep 4, 2025)
Updated on December 30, 2025 • Markets
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Asian equities opened broadly higher after fresh signs of cooling in the US labour market strengthened expectations for a near‑term Federal Reserve rate cut. Softer jobs indicators, alongside calmer bond markets, supported risk appetite across Japan, Australia and South Korea, while China was mixed. This article captures the key market moves, why they happened, and what to watch through the day.
Market Snapshot (Asia open)
- Japan, Australia, South Korea: Opened higher, tracking Wall Street’s rebound and weaker US jobs signals.
- China/Hong Kong: Mixed to soft amid domestic policy and regulatory concerns.
- Tech & exporters: Benefited from improved risk tone and softer dollar.
Movements are indicative at the open and may change intraday. Check live quotes on your preferred market terminal.
What’s Driving the Move
- Cooling US labour signals: Job‑openings data and recent surveys point to softer hiring momentum, raising the odds of a policy pivot by the Fed.
- Fed‑cut expectations: Traders are now pricing a high probability of a September rate cut, easing financial conditions at the margin.
- Wall Street tone: Overnight gains in US equities helped sentiment across Asia at the open.
Dollar & Bonds Check
The dollar edged softer as Treasury yields eased from recent highs, reflecting increased confidence in forthcoming policy easing. Long‑dated yields remain elevated compared with last month, so swings can be sharp if data surprises.
What It Means for India
- Risk‑on cues can support domestic indices at the open, particularly large‑cap banks and exporters.
- Crude and the dollar index remain key—any sharp rebound could cap gains.
- Watch FII flows and derivatives positioning ahead of domestic macro prints.
Day’s Watchlist
- Fresh US labour prints and Fed‑speak for confirmation of a dovish turn.
- China policy headlines and moves in tech hardware supply chains.
- Bond‑auction results in Japan and moves in long‑dated yields.
Quick FAQs
Q1. Why are Asian stocks up?
Because weaker US labour indicators increased the likelihood of a Fed rate cut, improving risk sentiment.
Q2. Will the rally sustain?
It depends on incoming US data, Fed guidance, and China market headlines. Keep an eye on yields and the dollar.
Important Links
- US labour data (JOLTS / employment updates) — see official releases on BLS.gov
- Federal Reserve policy updates — federalreserve.gov
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