Asian Stocks Rise on Fed Rate Cut Hopes
Asian stocks reached a six-week high on Monday, while the dollar hovered near its lowest in almost three months, according to a new report. The report noted that the industry awaits the Federal Reserve decision regarding interest rates early next year.
The same expectations led to a fierce rally in precious metals. Silver climbed above the $80-per-ounce mark for the first time, before seeing a sharp decline in volatile trading on Monday.
Platinum and palladium also saw a sharp dip after previously hitting all-time highs. Gold saw a sharp dip, erasing almost 1%, but has repeatedly breached record highs throughout 2025 on dollar weakness.
According to the report, safe-haven demand skyrocketed and investors continue to wager on rate cuts. The report cited Charu Chanana, chief investment strategist at Saxo, who commented on the matter.
Chanana said that precious metals have been lifted this year by a powerful mix of rate-cut tailwinds and hedging against geopolitical and fiscal uncertainty. “Add supply worries and the move has turned parabolic. But the late-year, near-vertical surge, especially in silver, also raises the risk of market risks. Near-term, the risk is technical and positioning-led.”
Chanana continued by saying that the big picture for precious metals still looks structurally supportive, with easier rates ahead, fiscal and geopolitical unease, and ongoing diversification demand. This suggests that any pullbacks could be seen as investment opportunities by long-term investors.
Geopolitics was also back on investors’ minds following US President Donald Trump’s statement this Sunday that he and Ukrainian President Volodymyr Zelenskiy were getting a lot closer to an agreement to end the war in Ukraine. For people directly affected by these developments, the potential agreement could mean a significant reduction in uncertainty and volatility.
The MSCI’s broadest index of Asia-Pacific shares went up 0.27%, hitting the highest point since early October of this year. The report called it a strong start to the last week of the year, but it also noted that the index as a whole went up 25% in 2025, boosted by tech stocks as AI mania took hold of investors.
Investors’ focus on the holiday-curtailed week will be on the minutes of the Fed’s last meeting, which is expected to happen on Tuesday. The industry awaits the Federal Reserve decision regarding interest rates early next year, which could have a significant impact on the market.
The dollar hovered near its lowest in almost three months.
Asian stocks reached a six-week high on Monday. The report concluded by saying that the market will be closely watching the developments in the coming weeks, as they will be influenced by the Federal Reserve decision and geopolitical developments.
