HONG KONG | September 16, 2025
Asian stocks climbed on Tuesday, tracking another record-setting session on Wall Street, as investors looked ahead to the U.S. Federal Reserve’s policy meeting and an anticipated interest-rate cut. Markets also kept a close watch on potential talks between U.S. President Donald Trump and Chinese President Xi Jinping following recent discussions in Madrid.
Traders widely expect the Fed to announce a rate reduction when it concludes its meeting on Wednesday, with attention centered on its updated “dot plot” of interest-rate projections and remarks from Chairman Jerome Powell. The decision comes as the U.S. economy shows fresh signs of cooling: initial jobless claims reached 263,000 in early September the highest weekly level since 2021 while July’s Job Openings and Labor Turnover Survey showed openings fell to 7.18 million, leaving more job seekers than available positions for the first time in over four years.
Rising borrowing costs have also driven U.S. housing affordability to record lows. Industry data show typical monthly mortgage payments have nearly doubled from pre-pandemic levels, while rents continue to rise, pressuring household spending and business confidence.
Meanwhile, the U.S. Senate last week confirmed Stephen Miran, a Trump economic adviser, as the newest member of the Fed’s Board of Governors, adding a fresh voice to the rate-setting Federal Open Market Committee.