CHENNAI: Asian stock markets, including India's Sensex and Nifty, are showing positive momentum in mid-morning trade on Friday, September 12. The optimism is largely driven by expectations of an upcoming interest rate cut by the US Federal Reserve, as well as encouraging domestic corporate developments.
Asian Markets
Asian equities are broadly higher this morning. The MSCI Asia-Pacific index is approaching record highs as investors respond to recent global economic data and supportive policy signals.
In Japan, the Nikkei 225 index is advancing, helped by a weaker yen and strong quarterly earnings from major corporations. The weaker currency makes Japanese exports more competitive, boosting investor confidence in export-oriented firms.
In Hong Kong, the Hang Seng Index has risen by approximately 1.6%. Technology companies and financial services firms are leading the gains, with investors feeling encouraged by signs of policy support and easing geopolitical tensions.
In China, the Shanghai Composite is trading higher, lifted by optimism over upcoming government measures aimed at stimulating economic growth and stabilizing markets amid external uncertainties.
Southeast Asian markets, including Singapore and South Korea, are also trading in positive territory, as hopes of lower U.S. interest rates prompt capital flows toward emerging markets.
Indian Markets
India’s stock market has opened the day on a positive note, extending the recent upward trend. As of mid-morning, the Nifty 50 index is trading above the 25,100 level, while the Sensex has gained more than 300 points.
The Information Technology (IT) sector is outperforming, with Infosys leading the gains. The stock has risen by over 1% following the announcement of a ₹18,000 crore share buyback program. This move has been interpreted as a signal of strong financial health and confidence in future growth prospects.
Other sectors showing strength include consumer goods, pharmaceuticals, and select banking stocks, which have responded well to the positive market sentiment.
The market breadth is positive, with advancing stocks significantly outnumbering decliners, indicating broad participation by investors across sectors.
The Indian rupee is slightly stronger, trading at around ₹88.40 per U.S. dollar. This reflects improved investor sentiment and a slight reversal from recent depreciation trends, as expectations of a Fed rate cut increase capital inflows toward emerging markets.
Global Economic Factors
The positive trend in Asian and Indian stock markets is supported by the anticipation that the U.S. Federal Reserve will reduce interest rates in its next policy meeting. Recent U.S. economic data, including slower job growth and stable inflation rates, suggest that a rate cut is likely to help stimulate the economy. Investors view this as a positive development for emerging markets, as it could reduce capital costs and encourage foreign investment flows into India and other Asian markets.