Global Markets Surge Amid Rate Cut Expectations

Asian stocks firmed as central bank meetings signaled further rate cuts. China's central bank lowered its 14-day repo rate, boosting blue chips. U.S. futures also rose with the S&P 500 reaching all-time highs. The Fed's potential rate cuts, global economic data, and US government funding negotiations are key market movers this week.

Asian stocks saw a boost on Monday ahead of crucial central bank meetings and anticipated rate cuts, alongside significant U.S. inflation data that signals further easing. China's central bank cut its 14-day repo rate by 10 basis points, leading to a 0.5% hike in Chinese blue chips.

In light trading due to a Japanese holiday, MSCI's Asia-Pacific shares index outside Japan climbed 0.2%. Tokyo's Nikkei, though shut, had its futures traded at 38,530, reflecting a positive trend. Meanwhile, European and U.S. futures saw modest gains, with the S&P 500 seeing a notable uptick in September, historically a weak month for stocks.

More than 20 billion shares exchanged hands in the U.S. on Friday, marking the busiest session since January 2021. Analysts from BofA highlighted the S&P's tendency to rise significantly when there's no recession following Fed rate cuts. Eyes are on the Fed's preferred inflation gauge expected to rise moderately, influencing future economic strategies and rate adjustments.

(With inputs from agencies.)