Fed Expectations Boost Asian Markets While China's Growth Slows

Asian stock markets showed a generally positive trend following the release of U.S. inflation data, which weakened expectations of a Fed rate hike. However, China's slower-than-expected economic growth added volatility to the outlook. The Nikkei 225 rose by %1.5, while the Hang Seng Index fell by %0.8. This dynamic highlights the Fed's potential for further rate hikes in 2024. China's declining export figures weakened the region's competitive edge. With tightening commercial credit and rising financial stress for KOBIs, the impact of central bank policies on the banking sector is intensifying. Markets are now balancing expectations of a more aggressive Fed stance against China's economic growth prospects.