Most Asian shares rose, following their US peers higher, as investors positioned for a second Donald Trump presidency and an expected Federal Reserve interest-rate cut.
Equity gauges rallied in Hong Kong and China on expectations that Beijing will roll out more stimulus.
That was after the S&P 500 surged 2.5% Wednesday, its best post-election day in history, and the Nasdaq 100 advanced 2.7%.
The Fed is forecast to trim its benchmark rate by a quarter point Thursday. The gains for US stocks reflected expectations that a Trump policy agenda favoring lower taxes and less regulation may support corporate profits.
At the same time, Treasury 10-year yields surged 16 basis points on Wednesday on expectations the president-elect’s fiscal plans and proposal to hike tariffs will boost inflation and erode the Fed’s ability lower rates.
“After digesting Trump’s win of the presidency, investors in Asia are now focusing on China’s impending stimulus announcements,” said Frederic Neumann, a chief Asia economist at HSBC Holdings Plc in Hong Kong.
“Hopes are rising that China may unveil a substantial fiscal package in the coming days, providing a shot in the arm for its languishing economy.”
