TechFlow, Sept 16 — According to Jinshi Data, Eastspring Investments investment specialists Vis Nayar and Ray Farris said that the dovish guidance from Federal Reserve Chair Powell at this week's meeting could exacerbate the dollar's weakness, thereby boosting Asian equities. "This year’s strong performance in Asian markets has largely been driven by domestic capital flows, but if the dollar resumes its downward trend, it may trigger fund reallocation from the U.S. to emerging markets for diversification," they wrote in a research report. Analysts noted that fundamental earnings improvements have also been a key driver behind the recent strength in Asian stocks, with most Asian markets significantly raising their earnings expectations for the next year due to trade agreements. They added that if the Fed's dot plot shows the median rate projection for 2026 remaining unchanged, or if Powell downplays the prospect of rate cuts, it could pose a major risk to Asian markets.
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