Asian Stocks Rise as Traders Bet on Fed Policy Shift, Korea Won Jumps 1%

Stocks and currencies in Asia gained along with a weakness in the dollar, as traders embraced riskier assets on prospects the Federal Reserve’s tightening cycle is nearing an end.

Equity benchmarks in Hong Kong rallied more than 2% while shares in Australia and South Korea climbed about 1%. The MSCI’s Asia benchmark was on track for its best week in two months.

In China, the latest private survey data showed a slower-than-expected expansion in services. The Korean won rose more than 1% against the greenback, the most among Asian currencies.

Long-dated Treasury yields fell Thursday. The 10-year benchmark slipped nearly eight basis points. Trading in Treasuries in Asia will be closed given the holiday in Japan.

Oil was set for a second weekly loss as the Israel-Hamas war remained contained and clouds appeared on the demand horizon. Gold headed for its first weekly decline in four.