TOKYO: Asian stocks gained and the dollar sagged on Friday after a top Federal Reserve official all but cemented expectations of a U.S. interest rate cut later this month.
Wall Street shares shook off a sluggish start and moved higher overnight thanks to the dovish comments by Williams. "Dovish Fed policy expectations do provide support for the equity markets, which are set to rebound after suffering losses the previous day. But factors such as U.S.-China trade issues and tensions over Iran are likely to limit the markets' gains," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.
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