Asian Markets Rebound Led by Indonesia, China Rate Cuts

Asian markets rebounded strongly following the initial selloff triggered by Moody's downgrade of the U.S. credit rating, with Indonesia's stock index reaching a four-month high amid expectations that Bank Indonesia will resume its monetary easing cycle. The rupiah strengthened, easing pressure on the central bank to support the currency, while the U.S. dollar stabilized after a recent decline. China cut key lending rates to historic lows in an effort to bolster economic growth and cushion the impact of ongoing U.S.-China trade tensions, further boosting investor sentiment across the region. Gains were widespread, with markets in South Korea, Taiwan, Hong Kong, Shanghai, Tokyo, and other major Asian cities rising, supported by optimism over reduced U.S. tariffs following a recent trade deal and hopes for Federal Reserve interest rate cuts later this year. However, some Federal Reserve officials expressed caution about resuming monetary easing amid concerns over inflation risks posed by tariffs and potential tax cuts. Overall, the market recovery reflects a mix of easing geopolitical tensions, central bank policies, and renewed investor confidence in economic growth prospects.