Strong US Economic Indicators Propel Asian Markets, Easing Fed Rate Cut Concerns

Asian markets experienced an upward surge on Friday, buoyed by a robust performance in the tech sector on Wall Street. This positive momentum alleviated apprehensions among traders that the Federal Reserve might delay or reduce interest rate cuts earlier anticipated in the year, according to reports from APP.

Recent data from the United States, including indicators on inflation and employment, along with statements from central bank officials, have contributed to market fluctuations amidst escalating geopolitical tensions, leading to a downturn in equities for the month of January and marking the end of a year-end rally.

Despite concerns, the data revealed consumer inflation surpassing expectations and a resilient labor market, indicating the sustained strength of the world's leading economy despite borrowing costs reaching two-decade highs.

Additionally, on Thursday, unexpected figures highlighted a slowdown in jobless claims, implying that the Federal Reserve might need to maintain elevated interest rates for an extended period to prevent a resurgence of inflation.

In response to the latest data, traders have revised their expectations for a March interest rate cut, reducing the probability to just over 50%, down from the 80% reported last week.