Asian equities advanced on Tuesday, tracking Wall Street’s strong rebound overnight as weak U.S. jobs data reinforced expectations for a Federal Reserve rate cut.
The July U.S. payrolls report showed just 73,000 jobs added, with the unemployment rate climbing to 4.2%. The disappointing data heightened recession concerns and pushed the market-implied probability of a September rate cut to 94%.
South Korea’s KOSPI gained 1.6%, Australia’s ASX 200 climbed over 1%, and Japan’s Nikkei 225 rose 0.6%. Mainland Chinese markets traded higher, while Hong Kong’s Hang Seng Index slipped 0.2%.
Attention now turns to the Reserve Bank of India’s policy decision due Wednesday. Economists widely expect the central bank to keep its benchmark rate at 5.50% following a preemptive cut in June, with the possibility of further easing later this year if growth slows.
However, sentiment remains cautious as U.S. President Donald Trump renewed threats to impose tariffs on Indian imports of Russian oil, adding to uncertainty in the global trade outlook.