NextFin news, On Friday, September 12, 2025, equity markets in Asia and the United States reached new record highs as investors reacted to growing expectations of Federal Reserve interest rate cuts. This market rally was observed across major Asian emerging markets including Taiwan, South Korea, and Singapore, as well as key US indices such as the Dow Jones Industrial Average, S&P 500, and Nasdaq.
Asian equity benchmarks hovered near their lifetime highs, with the MSCI index tracking emerging Asian stocks rising for the sixth consecutive day to a fresh four-year peak. Most regional indices were on track for their strongest weekly gains in months, marking the MSCI gauge's best weekly performance in about a year. The rally was supported by currencies in the region advancing against the US dollar, reflecting investor appetite for higher-yielding assets amid expectations of monetary easing.
In the United States, the Dow Jones Industrial Average surpassed 46,000 points for the first time on Thursday, with the S&P 500 and Nasdaq also hitting new peaks. This surge followed data showing jobless claims reaching a four-year high of 263,000, reinforcing market anticipation of Federal Reserve rate cuts despite August inflation accelerating to 2.9%. Market pricing indicated a 94.8% probability of a quarter-point rate cut at the upcoming Federal Reserve meeting, with only a 5.2% chance of a half-point reduction.
Notable stock movements included Nvidia, which gained on analyst upgrades due to sustained demand for artificial intelligence infrastructure, and Warner Bros. Discovery, which soared 29% on rumors of a Paramount-Skydance acquisition. Conversely, Apple faced continued downgrades and selling pressure amid broader tech sector weakness.
The US dollar index weakened to 97.58 on the back of rate cut expectations, while crude oil prices fell nearly 2% following OPEC+ supply plans. Gold prices reached an all-time high above $3,636 as investors sought inflation hedges.
Asian markets extended their rally on Friday, with Japan, South Korea, and Taiwan reaching record levels. Meanwhile, the Indian rupee weakened to a historic low of 88.44 against the dollar, pressured by steep US tariffs, persistent capital outflows, and uncertainty among exporters and importers. The Indian Nifty index surged past 25,000 for the seventh consecutive day, closing at its highest level since August 21, 2025, supported by positive global cues and technical bullish trends.
These developments reflect a global market environment heavily influenced by expectations of Federal Reserve monetary easing, with investors reallocating capital towards equities and assets perceived as benefiting from lower interest rates.
Sources: The Edge Malaysia (September 12, 2025), HDFC Sky (September 12, 2025), Reuters, Bloomberg.
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