Dove Fed guidance may exacerbate dollar weakness, boost Asian stock markets

According to Shenzhen Tide TechFlow, Eastspring Investments investment experts said that Fed Chairman Powell's dovish guidance may exacerbate the weakness of the dollar and boost Asian stocks. Asian stock markets performed well this year, driven mainly by local funds. If the dollar continues to fall, it may stimulate funds to flow from the United States to emerging markets. Analysts pointed out that improvement in earnings is also an important factor in the strengthening of Asian stock markets, and most markets have raised their earnings expectations for the next year. If the Fed's dot chart shows that the median interest rate forecast for 2026 remains unchanged, or Powell weakens the prospect of a rate cut, it may become a major risk in the Asian market.