Taiwan stocks surged above 46,600 and the Hang Seng Index gained 2.2% as cooling inflation expectations reduced September Federal Reserve hike odds and lifted technology shares.
The official Federal Reserve Board publication, “Speech by Governor Waller on the economic outlook - Federal Reserve Board,” precisely supports both elements of the claim: Waller’s inclination to hold rates steady conditional on August inflation continuing to improve, and his willingness to consider a hike if inflation rebounds at the September 15–16 meeting. CNBC independently reports the same conditional stance.
Federal Reserve Governor Christopher Waller said he would support keeping interest rates unchanged if inflation continues to ease, while leaving open a hike if price pressures reaccelerate. His comments reduced expectations for a September quarter-point increase to roughly even odds from about 70% earlier in the week, supporting U.S. and Asian equities. Taiwan’s benchmark rose more than 740 points above 46,600, while Hong Kong’s Hang Seng Index gained about 2.2%, or 541 points, to open at 25,751, its highest level since August 21. Technology shares led gains across Japan, South Korea, China, Hong Kong and Taiwan, while investors continued to monitor inflation, energy prices, global yields, tariff uncertainty, possible Bank of Japan tightening and other central-bank policy risks.