Asia-Pacific markets rose on Wednesday, following Wall Street gains on hopes that the US Federal Reserve may cut benchmark interest rates in December.
Expectations rose after Bloomberg reported that White House National Economic Council Director Kevin Hassett was considered a front-runner to become the next Fed chairman. Investors see Hassett as someone more likely to push the central bank toward a lower interest rate environment supported by President Donald Trump.
Treasury Secretary Scott Bessent told CNBC on Tuesday that there is a “very good chance” Trump will name a new Fed chairman before Christmas.
Markets estimate a more than 84% chance the Fed will cut interest rates in December, according to CME’s FedWatch tool. New York Fed President John Williams also said Friday that there is room for interest rate cuts “in the near term.”
Japan’s benchmark Nikkei 225 index jumped 1.94%, led by the utilities, healthcare and financials sectors. Among the index’s top stocks were printer Toppan Holdings, which advanced 7.54%, technology-focused investment firm SoftBank Group, which rose 6.89%, and pharmaceutical company Otsuka Holdings, which rose 6.84%.
Japanese tech stocks rose for a second straight session, with semiconductor test equipment provider Advantest up 2.5% and Tokyo Electron trading up 0.61%. Lasertec and chip maker Renesas Electronics rose by more than 2% and 1% respectively, SEEbiz reports.
The Topix index rose by 0.9%.
However, shares of Japanese memory chip maker Kioxia fell more than 12% after the Nikkei reported Monday night that US private equity firm Bain Capital plans to sell about 350 billion yen ($2.24 billion) worth of its shares. The block trade will reduce Bain’s combined ownership in Kioxia to 44%, from 51%, the report said.
