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The new highs in the US stock market lead to a bullish outlook for Asian stocks as the market bets on the Fed's interest rate cut in September.
According to reports, Asian stock markets are expected to follow the overnight rise of US stocks, as US inflation data met expectations, enhancing market bets on a rate cut by the Fed in September. Tokyo, Hong Kong, and Sydney stock index futures all indicate that major benchmark indices will open higher. The three major US stock indices rose more than 1% overnight, with the S&P 500 and Nasdaq 100 both reaching new historical highs. Despite the decline in US Treasury yields and a lower dollar exchange rate, the market still sees a probability of over 90% for a rate cut by the Fed next month.