Asian stocks were expected to rise following a positive trend on Wall Street after Federal Reserve Chairman Jerome Powell reassured investors about the impact of trade tensions, suggesting that drastic measures were not needed in response to Donald Trump's trade policies. Australian shares and US equity futures were up, following gains in the S&P 500 and Nasdaq 100. Although Hong Kong contracts saw minor changes, there was a slight decline in US-listed Chinese stocks. Treasuries experienced a sudden shift, with yields dropping, and the dollar index rose.

The Fed’s decision to keep monetary policy unchanged was in line with expectations, with Powell indicating that the potential effects of tariffs on inflation would likely be temporary. This led to a significant increase in stock prices, despite adjustments to Fed forecasts that might be interpreted as negative for equities, such as lowering growth expectations for 2025 and raising the inflation forecast. Analysts noted that the recent stock market correction had already factored in a more challenging economic environment, with lower growth and higher inflation anticipated.

In the Asian market, upcoming data releases included Loan Prime Rates in China, unemployment figures in Australia, inflation data in Hong Kong, and a rate decision in Taiwan. The Bank of England was expected to maintain interest rates, while the Swiss National Bank was likely to cut rates by 25 basis points to 0.25%, according to consensus forecasts.