Here’s what analysts and strategists had to say:
Asian markets are likely to see a lift in sentiment following Federal Reserve Chair Jerome Powell’s dovish tone at the Jackson Hole symposium, which signalled a likely rate cut in September. The shift is triggering expectations of improved risk appetite and stronger performance in Asian equities and bonds.
A softer dollar is also in play, with pressure on rates making dollar-denominated investments less attractive and likely prompting capital flows toward Asia. Still, the sustainability of this rally is up in the air, depending on upcoming economic data and corporate earnings and whether the Fed commits to a deeper easing cycle, analysts say. Without that clarity, gains could be short-lived.
