HONG KONG - Asian markets rose again on Thursday to extend the week's global rally as traders ramp up bets on a third successive US interest rate cut next month.
With recent worries over stretched valuations appearing to be on the back burner for now, confidence continues to flow through trading floors, boosting riskier assets, including bitcoin.
Comments from a number of Federal Reserve officials and a string of weak jobs reports have combined to reinforce expectations that next month's policy meeting will end with another reduction in borrowing costs.
Meanwhile, the central bank's "beige book" of economic conditions around the United States pointed to a growing divergence in consumption, with lower-income populations pulling back.
"Overall consumer spending declined further, while higher-end retail spending remained resilient," said the report, adding that some retailers felt a negative hit from the record-long government shutdown.
Traders were little moved by data showing a drop in jobless claims, confounding forecasts for a small rise.
Markets are now pricing in around an 80 percent chance of a cut on December 10 and a further three next year. That compares with just three reductions in total that Bloomberg said had been previously expected.
All three main indexes on Wall Street pushed higher for a fourth straight day Wednesday, with markets there closed Thursday for Thanksgiving.
Most of Asia took up the baton with glee.
Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Seoul, Taipei and Jakarta all advanced, though Wellington and Manila struggled.
The global gains come after markets took a hit this month on concerns that a tech-led surge in recent years may have been overdone and the vast sums invested in the AI sector will take some time to see returns.
But those worries have for now been overshadowed by the prospect of lower rates -- with the Fed focusing on the jobs market rather than worry about elevated inflation.
Analysts also pointed to a wider range of firms pushing markets higher in the latest rally, with smaller cap companies benefiting from lower borrowing costs.