Bloomberg Daybreak: Asia Edition Asia Stocks Rise on Wall Street AI Optimism, Fed Cut Bets
20 snips
Oct 29, 2025 
In this discussion, Mark Cranfield, a Bloomberg MLive strategist, sheds light on Japan's economic policy and the yen's response to U.S. Treasury comments. He explores the concentrated gains in Japanese equities driven by AI, alongside the impact of Fed policy. Joining him, Scott Ladner, Chief Investment Officer at Horizon, analyzes NVIDIA's influence on AI investment and argues that AI may herald a productivity boom rather than a bubble. They also delve into credit market dynamics and the implications of a potential Fed rate cut.
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Diverging Central Banks Could Push USD/JPY Down
- Opposing central bank directions — Fed easing and a hawkish BOJ — would likely drive dollar/yen lower.
- Cranfield says traders will sell dollars for yen if BOJ signals hikes while the Fed stays dovish.
Markets Priced For A Smooth Trump–Xi Meeting
- Markets price the Trump–Xi meeting as likely to progress relations slightly, not dramatically.
- Cranfield warns that failure to show progress would be a major negative shock because markets expect a positive outcome.
Hot Australian CPI Pushes RBA Cuts Off Table
- Australia's CPI surprised hot, especially the trimmed mean, removing the case for imminent RBA cuts.
- Cranfield says the RBA will likely stay on hold and bond traders must adopt a more hawkish stance.