Investors rotate back into tech and risk assets as odds of a December cut surge to 70%
MARKET INSIDER – Asia-Pacific markets opened the week with a sharp rebound, lifted by renewed optimism that the U.S. Federal Reserve may cut rates for a third time this year. The rally comes after New York Fed President John Williams signaled that softening labor-market conditions pose a greater threat than inflation—hinting that the Fed still has room to ease policy at its final 2025 meeting on Dec. 9–10.
The shift in tone electrified global markets. Fed funds futures now price a 70% chance of a quarter-point cut, up from 44% only days earlier, according to CME FedWatch. The renewed dovish signal has pushed investors back into risk assets following last week’s broad sell-off driven by collapsing sentiment around AI and tech.
Across the region, major indexes surged. South Korea’s Kospi climbed 1.56% with Samsung Electronics up more than 4.4%; Australia’s S&P/ASX 200 gained 1.12% after Friday’s steep drop; and Hong Kong’s Hang Seng jumped 1.41%, supported by tech and healthcare sectors. China’s CSI 300 hovered just below flat as mainland investors remained more cautious.
One of the day’s biggest movers was Qube, whose shares spiked nearly 20% after receiving an A$11.6 billion (US$7.49 billion) acquisition offer from Macquarie Asset Management. Mining giant BHP also ticked higher after confirming it will not pursue a merger with Anglo American.
Japan’s markets were closed for a holiday, but U.S. markets ended last week on a strong note, with the Dow up 1.08%, the Nasdaq up 0.88%, and the S&P 500 rising 0.98%.
For investors weary from weeks of volatility, Williams’ remarks provided a rare dose of relief—and a reminder that the global rate-cut cycle remains powerful enough to move markets sharply as 2025 draws to a close.
