Asian shares rise after Powell hints at potential rate cuts

• Asian shares rose after Powell's hints at potential rate cuts.
• The Japanese index Nikkei increased thanks to technology companies.
• This week, attention is drawn to Nvidia's earnings report.

According to ABC News, The Yomiuri Shimbun.

BANKING -- Asian shares rose on Monday, continuing the increase on Wall Street after Federal Reserve Chairman Jerome Powell hinted at the possibility of a rate cut. In his speech at the annual conference in Jackson Hole, Wyoming, Powell noted the risks for the labor market.

Despite the weak signal about the increase in jobs this month, many traders expect a rate cut at the next Fed meeting in September, following pressure from former President Trump for a rate cut.

Lower interest rates bolster stocks, which supports increased investment and consumption.

The Hong Kong Hang Seng Index rose by 2.1% to 25,866.49, while the Shanghai Composite Index increased by 0.9% to 3,858.59. This trading occurs at the highest level in a decade, despite concerns about rising tariffs on exports to the United States during Trump's presidency and weak domestic demand.

The Taiwan Taiex Index rose by 2.5%, as shares of chipmaker TSMC increased by 3.1%. The Tokyo Nikkei 225 rose by 0.3% to 42,767.41, with companies related to computer chips showing growth.

Cospi in South Korea rose by 1.1% to 3,204.48. The Australian S&P/ASX 200 index rose by 0.2%, while the SET in Bangkok added 1%.

Analysts believe that the Asian market is gearing up for growth, bolstered by the positive signals from Wall Street after Powell hinted at the possibility of a rate cut.

This week, particular attention is on Nvidia's earnings report, which will be published in the middle of the week after the market closes on Wall Street. Nvidia's role as a key supplier of chips for artificial intelligence gives the company significant influence on the broader market.

In the U.S. market, the price of oil rose to $63.74 per barrel, while the euro fell to $1.1707.

Tags: Economy