Investing.com News

Most Asian stocks rose on Friday, following the strength of Wall Street after the Federal Reserve cut interest rates as expected. Anticipation of more fiscal stimulus in China also boosted local markets.

Positive Market Reactions

Regional markets received positive cues from a record-high close on the S&P 500 and NASDAQ Composite. Market sentiment was buoyed by the Fed's indications of further interest rate cuts to address inflation concerns.

Risk appetite remained optimistic following Donald Trump's victory in the 2024 presidential election earlier this week. However, potential negative implications for Asia arose from his plans to implement more protectionist trade policies.

U.S. stock index futures remained flat during Asian trade.

Chinese Stocks Rise

Chinese stock markets saw gains, with the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes increasing by 0.4% and 0.6% respectively. Hong Kong’s Hang Seng index also rose 0.6%.

Mainland Chinese indexes performed the best this week despite worries regarding Trump's presidency, with the CSI 300 and SSEC up almost 7% each.

Attention turned towards the Standing Committee of the National People’s Congress (NPC), expected to outline plans for significant fiscal spending, aiming for 10 trillion yuan ($1.6 trillion) to support slowing economic growth.

Analysts suggest a second Trump presidency may lead to more stimulus in China. Trump has proposed a 60% tariff on Chinese imports, indicating economic challenges for China.

Asian Stocks Experience Weekly Gains

Most Asian markets traded higher on Friday, positioning themselves for weekly gains. Japan's Nikkei 225 and TOPIX indexes remained steady but were up nearly 4% this week due to a weakening yen against the dollar.

Australia’s ASX 200 climbed 0.9%, nearing record highs and expecting a 2.3% rise this week amid positive earnings reports.

South Korea’s KOSPI increased by 0.7%, projected to rise by 1.7% this week as local tech stocks performed well.

Conversely, Indian stocks lagged with the Nifty 50 down 0.4% this week, attributed to persistent foreign capital outflows and profit-taking as investors shifted focus to Chinese markets.

The regional markets reacted positively to Trump’s win, alleviating a significant uncertainty, complemented by the Fed's rate cut signaling strength in the U.S. economy.