{"id":119953,"date":"2025-10-15T09:55:00","date_gmt":"2025-10-15T05:55:00","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=119953"},"modified":"2025-10-15T10:33:47","modified_gmt":"2025-10-15T06:33:47","slug":"asian-stocks-rebound-on-powells-dovish-remarks-but-trade-tensions-cap-gains","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/asian-stocks-rebound-on-powells-dovish-remarks-but-trade-tensions-cap-gains\/10\/15\/market-updates\/","title":{"rendered":"Asian Stocks Rebound on Powell\u2019s Dovish Remarks, but Trade Tensions Cap Gains"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>Asian markets bounced back on Wednesday, recovering from sharp losses earlier in the week as investors drew optimism from <strong>Federal Reserve Chair Jerome Powell\u2019s dovish comments<\/strong> suggesting more potential rate cuts ahead. However, gains were tempered by persistent concerns over <strong>renewed U.S.-China trade tensions<\/strong> and signs of ongoing economic weakness in China.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Powell\u2019s Comments Spark Relief Rally<\/strong><\/h3>\n\n\n\n<p>The regional upturn came after Powell signaled that the Fed was prepared to <strong>end quantitative tightening<\/strong> and might shift toward a more \u201cneutral\u201d policy stance amid a <strong>softening U.S. labor market<\/strong>. His remarks boosted expectations for <strong>two additional rate cuts in 2025<\/strong>, pushing Treasury yields lower and weakening the dollar \u2014 conditions that typically favor equities.<\/p>\n\n\n\n<p>Following Powell\u2019s speech, analysts at MUFG said that \u201cmarkets are now confident that the Fed will prioritize growth stabilization,\u201d with risk sentiment improving across Asia.<\/p>\n\n\n\n<p>Japan\u2019s <strong>Nikkei 225<\/strong> jumped <strong>1.4%<\/strong> after a 3% plunge in the prior session, while the <strong>TOPIX<\/strong> gained <strong>1.3%<\/strong>. <strong>South Korea\u2019s KOSPI<\/strong> climbed <strong>1.7%<\/strong>, led by semiconductor and technology shares. In the Pacific region, <strong>Australia\u2019s S&amp;P\/ASX 200<\/strong> rose <strong>0.9%<\/strong>, and <strong>Singapore\u2019s Straits Times Index<\/strong> added <strong>0.5%<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>China and Hong Kong Lag on Trade Jitters<\/strong><\/h3>\n\n\n\n<p>Chinese equities underperformed as trade uncertainty weighed on sentiment. The <strong>Shanghai Composite<\/strong> and <strong>CSI 300<\/strong> indices were nearly flat, while <strong>Hong Kong\u2019s Hang Seng<\/strong> rebounded <strong>1%<\/strong> following heavy selling earlier in the week.<\/p>\n\n\n\n<p>Investors remained cautious after U.S. President <strong>Donald Trump<\/strong> escalated rhetoric, threatening to <strong>cut trade ties in the cooking-oil sector<\/strong> and labeling China\u2019s reduction in soybean imports as \u201ceconomically hostile.\u201d Beijing responded by vowing to defend its trade interests, reinforcing fears of another escalation between the two superpowers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Deflation Persists in China<\/strong><\/h3>\n\n\n\n<p>Economic data added to China\u2019s challenges. The latest readings showed <strong>consumer prices fell 0.3% year-on-year in September<\/strong>, marking a second consecutive month of decline, while <strong>producer prices dropped 2.3%<\/strong>, reflecting weak demand and sustained deflationary pressure.<\/p>\n\n\n\n<p>Analysts expect <strong>Beijing to roll out additional stimulus measures<\/strong>, including targeted fiscal support and monetary easing, to shore up domestic demand.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Outlook<\/strong><\/h3>\n\n\n\n<p>While Powell\u2019s comments provided a temporary lift to Asian equities, analysts cautioned that the region\u2019s outlook remains clouded by <strong>trade frictions<\/strong>, <strong>weak Chinese data<\/strong>, and <strong>global growth concerns<\/strong>. Market attention will now turn to upcoming <strong>U.S. inflation data<\/strong> and <strong>trade negotiations<\/strong>, which could determine whether the recent rebound has room to extend.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Asian markets bounced back on Wednesday, recovering from sharp losses earlier in the week as investors drew optimism from Federal Reserve Chair Jerome Powell\u2019s dovish comments suggesting more potential rate cuts ahead. However, gains were tempered by persistent concerns over renewed U.S.-China trade tensions and signs of ongoing economic weakness in China. Powell\u2019s Comments Spark &hellip;<\/p>\n","protected":false},"author":9,"featured_media":31994,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[39,36],"tags":[6849,6851],"class_list":["post-119953","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-global-stock-markets","category-market-updates","tag-asia","tag-stocks"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/119953","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=119953"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/119953\/revisions"}],"predecessor-version":[{"id":119954,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/119953\/revisions\/119954"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/31994"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=119953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=119953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=119953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}