Rising bets on the Fed cutting interest rates in H1 2024 fueled demand for riskier assets. According to the CME FedWatch Tool
, the probability of a May rate hike increased from 29.6% to 62.0% in just one week.
10-year US Treasury yields increased by 0.05% on Friday after a 2.12% slide on Thursday. Yields reflected the shift in sentiment toward the Fed rate path.
A positive week for the US equity markets set the tone for the Monday Asian equity market session. On Friday, the Dow rose by 0.01%, with the Nasdaq Composite Index and S&P 500 seeing gains of 0.08% and 0.13%, respectively.
On Monday, the Asian economic calendar and chatter from Beijing drew interest.
The PBoC left 1-year and 5-year Loan Prime Rates unchanged at 3.45% and 4.20%, respectively. However, Beijing pledges to support the Chinese real estate sector supported gains for the ASX 200 and Hang Seng Index.