Asian stocks edges higher amid Fed rate cut expectations

New Delhi: Amid the huge cutting interest rates expectations of Federal Reserve hovering in the United states along with the geopolitical sparks, the Asian stocks have surged over to six-week highs on Monday. However, the dollar has been trading in its almost three-months low, it is probable to ease the further session and the precious metals on the second note has sparked a strong upliftment with new profits gains.

The Silver metal has climbed above the $80 per ounce mark for the first time on Monday and while the platinum and palladium decline sharply after hitting all-time highs. The Gold has however eased by 0.45% but has reportedly crossed over the record highs in this financial year and will reach to its biggest annual gain since 1979 with a rise of over 72%.

There are multiple reasons along with U.S. Federal Reserve cuts expectations and that is geopolitical as U.S President Donald Trump met Ukrainian President Volodymyr Zelensky for positive talks where no peace agreement has been declared yet. The Fed rates cut prospects next year has kept the dollar under pressure with huge spectrum to be stunned by the expectations.

In terms of China Military, it has moved army, naval, air force and artillery units around Taiwan for its Justice Mission 2025 drills as the island territory is willing to defend democracy. The investors have been keeping strong focus on Federal Reserve meet due on Tuesday. Earlier, the U.S. central bank cut rates this month and projected just one more cut for next year while traders have priced in at least two more.

The prospect of the Fed cutting rates next year has kept the dollar under pressure, while the spectre of a new Fed Chair that may be dovish and willing to lower rates looms large. The dollar index was steady at 98.13 on track for a 9.5% drop for the year against steepest since 2017.