Asian stocks open higher on fed rate hopes

Asian stocks kicked off positively on expectations of upcoming US rate cuts, with Hong Kong leading the charge. Tokyo initially dipped due to a strengthening yen influenced by Fed policy speculation.

But the broader region showed optimism following the Fed signaling potential slowing of hikes amid cooling global inflation. Shanghai, Seoul, Sydney, Taipei, Wellington, Jakarta, Manila, Singapore and Kuala Lumpur all saw early gains.

Wall Street hit new records, with the Dow rising 0.3% to close at 37,665 on Wednesday. European markets like London joined the uptrend, closing 0.4% higher in their first open of the week. But oil markets remained concerned over potential regional turmoil from the Israel-Hamas conflict and ongoing Yemeni rebel attacks in the Red Sea.

While French shipper CMA-CGM resumed some Red Sea transit as a US-led coalition now patrols the waters, German giant Hapag-Lloyd continues circumventing the area by routing via the Cape of Good Hope.