Sept 23, V7N - Global stocks advanced in Asia on Monday, with investors anticipating central bank meetings expected to result in further interest rate cuts and key U.S. inflation data signaling room for additional monetary easing. China's central bank lowered its 14-day repo rate by 10 basis points, providing a slight boost to the markets, despite prior disappointment from its decision not to cut longer-term rates. The CSI 300 index gained 0.3% following the move.

Trading was light due to a holiday in Japan, but MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.3%, extending a 2.7% gain from the previous week. Singapore's main index reached its highest level since late 2007, while Tokyo’s Nikkei futures traded higher, continuing the momentum from last week's 3.1% rally driven by a weakening yen and signals from the Bank of Japan (BOJ) indicating no rush to tighten policy.

In Europe, EUROSTOXX 50, FTSE, and DAX futures all showed modest gains ahead of market openings. S&P 500 and Nasdaq futures in the U.S. also strengthened, with the S&P up 1% so far in September and a 19% gain year-to-date, reaching all-time highs.

Friday's U.S. trading session was particularly busy, with more than 20 billion shares changing hands—the highest volume since January 2021. Analysts noted that the Federal Reserve's recent half-point rate cut has bolstered optimism, with futures markets pricing in a 50% chance of another sizable cut in November. Economists like Barclays' Christian Keller pointed to the Fed's unusual move, reflecting its determination to maintain favorable labor market conditions and achieve a "soft landing" for the economy.

END/BUS/RH