Asian stocks rise as US rate hopes soothe nerves after torrid week

25/11/2025

Asian markets opened mostly higher on Monday, finding some calm after last week’s wild swings and concerns about a tech bubble.

A big part of the recent market fear came from the huge rush into anything related to artificial intelligence. Stocks tied to AI have been booming all year, with companies like Nvidia hitting record highs — even crossing the $5 trillion mark last month.

But many investors are now worried the hype may have gone too far. They’re questioning whether the money pouring into AI will actually turn into profits anytime soon. That uncertainty has fueled warnings that a market correction could be coming.

On top of that, expectations for another U.S. interest rate cut in December had been slipping. Inflation is still stubborn, and that has overshadowed signs of weakness in the job market.

However, things changed on Friday.
New York Federal Reserve President John Williams said he still sees “room for a further adjustment” at the Fed’s December 9–10 meeting.

That comment alone gave markets a big confidence boost. The chances of a rate cut jumped to around 70%, up from 35% earlier in the week.

Now, everyone is watching this week’s Producer Price Index (PPI) report. Since the government shutdown delayed other key data — including the important PCE inflation report — the PPI reading carries extra weight.

As analyst Fabien Yip from IG explained, if the PPI number is much higher than expected, it could show inflation pressures are still strong. That would make it harder for the Fed to cut rates next month, even with the softer job market.

After Wall Street finished Friday with a solid rally, Asian markets followed the positive mood.

Hong Kong and Seoul climbed more than 1%.
Sydney, Singapore, Wellington, and Taipei also showed strong gains.
Shanghai and Manila slipped.
U.S. futures moved higher.
Tokyo was closed for a holiday.

Still, the market mood remains cautious. Bitcoin is hovering around $87,000 — a recovery from last week’s seven-month low near $80,500, but still far below its all-time high of $126,200 reached just last month.