FX.co ★ Asian Stocks Rise as Fed Rate Hike Bets Cool

Asian equity markets rose on Friday as traders dialed back expectations of a Federal Reserve rate increase this month, following comments from Governor Christopher Waller. Waller indicated he would favor holding rates steady if inflationary pressures continue to ease. Market pricing now reflects roughly 50–50 odds of a quarter-point Fed hike in September, down from about a 70% probability earlier in the week.

Investors also closely tracked sharp movements in the yen, which has strengthened markedly in recent days on expectations of more aggressive policy tightening by the Bank of Japan. Market participants remained alert for any signs of official intervention to support the currency. Equity indexes in Japan, South Korea, China, and Hong Kong all advanced, led by gains in technology shares across the region.