(Bloomberg) — Asian equities were primed to rally Thursday after US stocks touched fresh highs as the Federal Reserve indicated it would meet market expectations with three rate cuts this year.
Most Read from Bloomberg
Australian shares and equity futures for Japan and Hong Kong all advanced. Japanese stocks are set to re-open after a holiday Wednesday. The S&P 500 index rose 0.9% to a new high while the tech-heavy Nasdaq 100 index, which is more sensitive to policy, rose 1.2%.
The Magnificent Seven group of mega-caps powered to new highs. US small-caps, which typically do well when the economy is expanding, rose almost 2% for the best session in more than a month.
Australian and New Zealand bonds rallied, echoing a rise in Treasuries. Gains were tilted toward the short end with two-year yields falling eight basis points and the 10-year falling by two basis points. The moves reflected an increase in expectations the Fed may cut as…
