Asia stocks climb as Nikkei tops 43,000 while traders price a 94% chance of a Fed cut

Stocks across Asia rose on Wednesday while the U.S. dollar stayed soft, after fresh figures pointed to steady growth in big economies and a case for central banks to keep policy supportive. Gains in equities came alongside calm moves in currencies and commodities.

On Tuesday, Wall Street set new records as investors grew more certain the Federal Reserve will lower interest rates next month. In Tokyo, Japan’s Nikkei crossed 43,000 for the first time. In digital assets, ether climbed to near a four-year high.

New U.S. inflation readings suggested President Donald Trump’s tariff policy has not yet fed through to consumer prices. In Japan, a separate report showed manufacturers turned more upbeat about business conditions after a trade deal with the United States.

Globally, the MSCI All Country World Index advanced for a second day to 948.54, its highest level ever. Japan’s Nikkei added 1.4%, also logging a fresh record for the second session in a row.

Data from the U.S. Labor Department showed the consumer price index increased 2.7% in the 12 months through July.

The S&P 500 closed at a high

In New York, the S&P 500 and the Nasdaq closed at all-time highs after President Trump signed an executive order that pauses triple-digit tariffs on Chinese goods for another 90 days.

Traders now see a 94% chance of a Fed cut in September, up from nearly 86% the prior day and about 57% a month ago, according to the CME FedWatch tool.

Investors were especially alert to the inflation print because it followed a weaker-than-expected jobs report on August 1, a combination that had stirred talk about stagflation risks.

Politics around the central bank also drew notice. Trump nominated White House adviser Stephen Miran to temporarily fill an open seat on the Federal Reserve’s Board of Governors, prompting fresh debate over potential White House sway on monetary policy.

Separately, the White House said it was “the plan” for the Bureau of Labor Statistics to keep releasing its monthly employment report after Trump’s choice to lead the agency, E.J. Antoni, had proposed suspending its publication.

Dollar remained little changed

In currency trading, the dollar was little changed at 147.84 yen. The euro edged up 0.1% to $1.1684 after a 0.5% jump the previous session, as reported by Cryptopolitan earlier. The dollar index, which tracks the greenback against major peers, fell for a second straight day.

In crypto markets, ether touched $4,634.70 in early dealings, the highest since December 2021, before easing 0.9%.

Energy and metals were quiet. U.S. crude slipped 0.05% to $63.14 a barrel. Spot gold was steady at $3,348.1 per ounce.

Looking to Europe, futures pointed to a positive open. Euro Stoxx 50 futures were up 0.2%, Germany’s DAX futures rose 0.3%, and FTSE futures gained 0.1%. U.S. equity futures were flat, with S&P 500 e-minis little changed.

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