As interest rate cut expectations rise, Asian stock markets collectively rise, with the Nikkei standing above 40,000 points for the first time, and the dollar hovering near a three-and-a-half-year low

Driven by the rise in U.S. stocks and the increasing expectations of interest rate cuts by the Federal Reserve, Asian stock markets generally rose, with the MSCI global stock index expected to reach a new historical high. The Japanese stock market saw a strong increase on Friday, with the Nikkei 225 index breaking the 40,000-point mark for the first time since January, while the dollar index fluctuated near a three-and-a-half-year low. This week's weak economic data from the U.S. further strengthened market expectations for interest rate cuts by the Federal Reserve this year. The market has fully priced in the expectation of two more rate cuts this year and increased bets on a third cut. Mary Daly, President of the San Francisco Federal Reserve, acknowledged in an interview that she sees increasing evidence that tariffs may not lead to a significant or sustained surge in inflation, which makes her open to a "fall" rate cut. However, Susan Collins, President of the Boston Federal Reserve, stated that she expects at least one rate cut this year but hinted that a cut in July may be premature. Masahiro Ichikawa, a strategist at Mitsubishi UFJ Morgan Stanley Securities, stated that the Japanese stock market is expected to continue its upward trend today, mainly driven by the semiconductor sector. Factors such as expectations for artificial intelligence demand, easing tensions in the Middle East, expectations for Federal Reserve rate cuts, and reduced risks of U.S.-China conflict are supporting the market. Main market trends: Asia-Pacific Stock Markets The MSCI global stock index is expected to reach a new historical high, up 0.11% as of the time of writing. As of the early session close, the Nikkei 225 index rose 1.3%, and the Topix index rose 1.6%. The FTSE Singapore Straits Index rose 0.58%, returning above 3,950 points. The Philippine stock index rose 1% to 6,394.04 points. Foreign Exchange Market The dollar index hovers around its lowest level since March 2022 at approximately 97.378. The euro against the dollar stabilized at $1.1698, having previously reached a high of $1.1745, the highest since September 2021. The dollar against the New Taiwan dollar fell below the 29 NT dollar mark, hitting a new intraday low since 2022. Commodities Spot gold fell 1% during the day, dropping below $3,300 per ounce, reported at $3,294.83 per ounce. Agricultural futures rose broadly, with cocoa up 3.96%, U.S. corn up 0.48%, and U.S. wheat up 0.42%. COMEX copper futures rose 0.03%. Brent crude and WTI crude oil rose nearly 0.5% during the day. 【11:56】 Spot gold fell 1% during the day, dropping below $3,300 per ounce, reported at $3,294.83 per ounce. Brent crude and WTI crude oil rose nearly 0.5% during the day. According to Iranian media reports, the Iranian Foreign Minister stated that no agreement has been reached with the U.S. on resuming nuclear negotiations. He also mentioned that Iran currently does not plan to host IAEA Director General Grossi in Tehran [Updated at 10:45] On Friday, the MSCI global stock index is expected to set a new historical high, with an increase of 0.11% as of the time of publication. The Tokyo Stock Exchange index rose 0.8% to 2826.15 points, and the Nikkei 225 index increased by 1.6%, breaking the 40,000-point mark for the first time since January. In the foreign exchange market, the US dollar index hovers around its lowest level since March 2022 at 97.378, with analysts predicting a 2% decline in June, marking the sixth consecutive month of decline. The euro against the US dollar stabilized at $1.1698, after briefly reaching a high of $1.1745, the highest point since September 2021. Amid expectations of a US dollar interest rate cut, the US dollar against the New Taiwan dollar fell below the 29 NT dollar mark, hitting a new intraday low since 2022. Commodity agricultural futures rose broadly, with cocoa soaring 3.96%, US corn up 0.48%, and US wheat increasing by 0.42%. COMEX copper futures rose 0.03%.