Asian equities recorded impressive gains on Thursday, boosted by increasing speculation of U. S. rate cut in September. Japanese benchmark index, the Nikkei 225, rose 1.6%, the Australian index improved 1% and the Indian index improved 1.1%, propelled by signals of a dovish Federal Reserve officials and weaker U.S. employment data.
According to CME FedWatch tool, the probability of Fed rate cut in this month is now more than 96 percent. Contrarily, Chinese markets fell, with the CSI 300 index falling up to 2.6%, as new warnings of stricter regulation arose to limit speculative trading. Analysts note the diverging moves highlight how global liquidity hopes are clashing with Beijing’s cautious stance.
