Asian Stocks to Gain After Powell Allays Concerns: Markets Wrap

Toby Alder

Sun, Mar 9, 2025, 2:54 PM 4 min read

(Bloomberg) -- Stocks successful Asia are acceptable to inclination higher aft Federal Reserve Chair Jerome Powell calmed marketplace fears astatine the extremity of past week by saying the US system is good and determination was nary hurry to set monetary policy.

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Equity scale futures successful Australia and Japan precocious portion those successful Hong Kong edged lower. US stocks recovered connected Friday, with the S&P 500 closing up 0.6% aft earlier falling arsenic overmuch arsenic 1.3% and the Nasdaq 100 moving distant from the threshold of a correction to extremity the time marginally higher. Bonds fell and the greenback slipped to headdress its worst week since 2022.

A myriad of headlines astir the economy, tariffs and geopolitical developments combined for a roller-coaster week for markets. While Powell acknowledged a emergence successful uncertainty for the US economical outlook, helium said officials didn’t request to unreserved to chopped involvement rates. Furthermore, helium expected the way to 2% ostentation to continue, suggesting terms hikes from tariffs whitethorn beryllium temporary.

Powell “appeared calm connected growth, pleased with the advancement occurring connected ostentation and somewhat dismissive of the caller emergence successful ostentation expectations,” Vital Knowledge laminitis Adam Crisafulli said, noting that the Fed Chair’s words “clearly had a affirmative effect connected markets.”

Treasury yields roseate Friday and the dollar lifted disconnected lows aft Powell’s comments arsenic the marketplace tamped down expectations the cardinal slope whitethorn resume cutting involvement rates arsenic soon arsenic May. Bonds person been caught betwixt signs that US economical maturation is slowing and sticky ostentation successful the past month.

US occupation maturation steadied past period portion the unemployment complaint roseate — a mixed snapshot of the labour market. Nonfarm payrolls accrued 151,000 successful February aft a downward revision to the anterior month. The unemployment complaint climbed to 4.1%.

“Friday’s jobs study was weaker than expected, which is concerning due to the fact that this study doesn’t relationship for the caller authorities occupation cuts from DOGE,” said Glen Smith, main concern serviceman astatine GDS Wealth Management. He added that the study “suggested that businesses are taking a intermission connected hiring until determination is much certainty astir tariff argumentation and the economical outlook.”

In Asia, China’s user ostentation fell acold much than expected to autumn beneath zero for the archetypal clip successful 13 months arsenic deflationary pressures persisted successful the economy. Investors volition present beryllium looking for signs that the government’s stimulus is translating into stronger home demand.