(Bloomberg) — Asian stocks advanced and the yen strengthened early Monday as investors took positions in anticipation of the Federal Reserve cutting US interest rates from next month.
Most Read from Bloomberg
Shares in Australia and Korea climbed, benefitting from Chair Jerome Powell’s Jackson Hole speech, when he said the “time has come” to pivot to monetary easing. The Fed’s dovish tilt also lifted the yen against the dollar, as Asian-domiciled funds added to existing short positions on the greenback. Japanese stocks declined, while contracts for US equities were steady.
Haven buying in response to rising tensions in the Middle East was an additional driver for currencies. The region is bracing for an expanded conflagration after Israeli warplanes swooped over southern Lebanon, taking out thousands of Hezbollah missile launchers in what was called a pre-emptive strike. Oil…
