Asian markets bounced back after three straight days of losses, with Japan’s Nikkei and South Korea’s Kospi gaining nearly 1% each. The rebound came on hopes of a potential U.S. Federal Reserve rate cut, which lifted global sentiment despite rising U.S.–China trade tensions. Donald Trump renewed criticism of China, accusing it of not buying American soybeans and even threatening a cooking oil embargo.
Meanwhile, China’s September CPI declined 0.3% year-on-year, reflecting weak consumer demand. In India, GIFT Nifty pointed to a mildly positive opening.
U.S. markets showed mixed signals, S&P 500 closed lower after wild swings, while futures edged up slightly.
Bond yields fell, with the U.S. 10-year dipping below 4%. Fed Chair Jerome Powell signaled the possibility of rate cuts and hinted at stopping the shrinkage of the Fed’s $6.6 trillion balance sheet.
The dollar weakened, pushing the index below 99, while gold hit a record high and oil prices slid over 1%.