Fed Chair Powell hinted at the latest press conference that the Fed may cut interest rates three times in 2024, by 25 basis points each time. This dovish signal pushed global stock markets higher.
Asian markets rose across the board today: - Nikkei 225 rose 2.1% - Hang Seng Index rose 1.8% - Shanghai Composite rose 1.5% - Malaysia KLCI rose 1.2%
Analysts believe that the Fed's dovish pivot will have a positive impact on emerging markets. As the US dollar weakens, funds are expected to flow into Asian markets, and Malaysia, as an important ASEAN economy, will benefit from this.
Bank Negara Malaysia is expected to follow the Fed in cutting rates next year, which will further support the local stock market and real estate market.
Investors should pay attention to the upcoming US employment and inflation data, which will affect the Fed's rate cut pace.