Global Sentiment Improves: Asia-Pacific Markets Advance on Fed Policy Shift Expectations
Stock markets across the Asia-Pacific region rose broadly on Wednesday, 26 November 2025. Investor optimism was strengthened in line with the rally on Wall Street and growing expectations that the Federal Reserve could cut its benchmark interest rate in December. Political and policy developments within the United States also bolstered confidence, such as the emergence of a new candidate for Fed Chair and signals from senior officials regarding the direction of monetary policy.
Growing Expectations of a Rate Cut
Bloomberg cited unnamed sources in its report of Hassett being discussed as the top candidate for Fed Chairman, according to people familiar with the matter. Market participants see Hassett as someone who would be more favorable to a low-interest-rate environment, closer to what President Donald Trump has said he wants.
U.S. Treasury Secretary Scott Bessent also said there’s a “very strong chance” President Trump will name a new Fed Chair before Christmas. Elsewhere, the CME FedWatch tool indicated odds greater than 84% of a Fed rate cut in December. Market sentiment also was aided by comments from New York Fed President John Williams, who said there is room for rate cuts “in the near term.”
Japan Leads Regional Gains
The Nikkei 225 gained 1.85% to 49,559.07, driven by strength in the utilities, real estate and financial sectors. Toppan Holdings surged 6.27%, while SoftBank Group advanced 5.65%. Japanese technology stocks were also higher, with Advantest, Tokyo Electron, Lasertec and Renesas all up. But shares in Kioxia plummeted 14.89% after reports surfaced that Bain Capital intends to offload part of its stake worth about 350 billion yen.
South Korea, Australia Advance
In South Korea, the Kospi was up 2.67% while the Kosdaq advanced 2.49%. The broader market strength did little to help Lotte Corp, which remained under pressure, ending 6.09% lower as its restructuring plan included the separation and merger of Lotte Chemical with HD Hyundai Chemical. Australia also put on a solid performance; the S&P/ASX 200 was up 0.81% at 8,606.5 even as the country saw accelerating inflation. The consumer price index for October rose 3.8% year-on-year, the fastest in seven months.
Steady Gains in China, Hong Kong, and Taiwan
Hong Kong’s Hang Seng Index moved upwards, adding 0.38%, while the mainland China CSI 300 was up 0.61%.
Meanwhile, Alibaba’s shares dropped 1.27% after the company reported that its adjusted EBITA for the second quarter plunged 78% year-on-year, although revenue was still higher than expected.
In Taiwan, the Taiex advanced 1.85% with shares of Hon Hai Precision Industry leading the pack higher with a 3.65% gain. It received approval from the Wisconsin Economic Development Corporation for an amended tax incentive deal of up to USD 16 million for facility expansion and an additional investment of as much as USD 569 million.
India’s Markets Rebound
After three successive sessions of losses, India’s Nifty 50 and BSE Sensex rebounded by over 1%, signaling improved domestic market sentiments. Conclusion The broad-based gains across the Asia-Pacific markets reflect rising global optimism about the possible easing of US monetary policy.
With an expected Fed rate cut, mixed political developments in Washington, and resilient performance across key sectors in Asia, market momentum surged significantly. Yet, due to corporate-specific issues in some stocks, the general outlook suggests that risk-on sentiment has regained dominance in trading across the region.
