Asia market advances as dollar weakens, fed decision in focus

September 16, 2025 (MLN): Asia’s markets advanced on Tuesday, with regional stocks gaining while the dollar weakened, as investors anticipated that the U.S. Federal Reserve would restart its easing cycle this week and possibly signal room for further rate cuts.

Market sentiment was largely unaffected by political developments in Washington, where the U.S. Senate narrowly approved Stephen Miran’s appointment to the Fed’s Board of Governors, and a U.S. appeals court blocked President Donald Trump from removing Fed Governor Lisa Cook.

Both developments were viewed as having little impact on the Fed’s upcoming policy decision on Wednesday, where markets have already fully priced in a 25-basis-point rate cut.

“There are ongoing concerns about the politicization of the Fed and President Trump’s attempts to, in a sense, stack the board,” said Tony Sycamore, market analyst at IG. “However, I still believe a 25-basis-point cut is very much on track.”

Optimism over imminent Fed rate cuts has kept investor sentiment upbeat in recent sessions, driving equities to new peaks.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) climbed to its highest level in more than four years early Tuesday before easing slightly to trade 0.3% higher.

Meanwhile, Japan’s Nikkei (.N225) and Topix (.TOPX) indexes continued their rally, setting fresh record highs.

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