Asian stocks are currently experiencing fluctuations due to investors closely monitoring the policy direction of the US Federal Reserve. Traders have adjusted their forecasts for potential Fed cuts through September 2025 by over 10 basis points, indicating a reduction in expectations for rapid interest rate cuts. This shift in expectations comes as the US economy remains robust and concerns about fiscal deficits following the presidential election grow.

In China, the recent stock market rally has attracted significant attention, particularly regarding the resilience of the market. A government-affiliated think tank has proposed the issuance of 2 trillion yuan (approximately $281 billion) in special government bonds to establish a market stabilization fund. This proposal suggests potential government intervention to support the economy and boost investor confidence.