Asian currencies and Asian stocks rose more on optimistic expectations of a U.S. interest rate cut

(1) Most emerging Asian currencies and equities rose on Wednesday as investors remained optimistic that the Fed could start cutting interest rates as early as March next year as the dollar weakened and Wall Street rebounded. (2) The MSCI Emerging Markets Currency Index rose 0.2% to its highest level since April 2022. (3) The MSCI Emerging Asia Index rose 0.5% and is on track to post gains for the full year, ending a two-year losing streak. (4) Investors continue to bet on expectations that the world’s major Central Banks may start cutting interest rates next year, with the Fed likely to take the lead. (5) Tim Waterer, an analyst at KCM Trade, said, “Traders are shunning the dollar, which is allowing emerging market currencies to shine.” ” (6) Waterer also said that once the Fed starts cutting interest rates, the yield advantage that the US enjoyed for most of 2023 will be eroded next year. (7) The Thai baht appreciated by 0.4%, reaching its highest level since August 3. (8) The Indonesian rupiah is one of the best-performing regional currencies so far this year, rising 0.5% on the day to reach its highest level in nearly a month. Indonesia’s stock market rose 0.6% to its highest level since September 2022