Asian equities extended gains Friday, tracking another Wall Street record after the Federal Reserve cut interest rates and on the prospect of market-friendly policies from a Trump administration. Traders are also keenly awaiting the end of a week-long meeting of key Chinese officials who have been hammering out a major stimulus package for the world's number two economy with an eye on the US election result. While there are concerns that another four years of Donald Trump could see a rise in tensions between Beijing and Washington, investors are optimistic that his plans to slash taxes and push through more deregulation will boost companies' bottom lines.
There are also worries that the Republican's policies could stoke inflation again, dealing a blow to the Fed's long-running battle against prices. But central bank boss Jerome Powell added to the upbeat mood Thursday by insisting that the outcome of this week's vote would have no impact on policymakers' decision-making, adding that they would make their decisions based on data. After the policy board cut rates 25 basis points to 4.
50-4.75 percent, as expected following September's 50-point reduction, Powell said: "We don't guess, we don't speculate, and we don't assume." The Fed's post-meeting statement said that "labour market conditions have generally eased" since earlier in the year and noted progress in bringing inflation down to its two percent target.
Traders are now trying to ascertain the outlook for another cut in D.
