some point this year. >> jerome powell filing up equities with the dove's stance. can the rally last? here are the top stories. the dovish fed sending the yen stronger for the first time in eight days. japan's finance minister says he's watching the currency with a high sense of urgency. chinese tech socks -- stocks see gains. doubling share buyback and rising dividend pie by 42%. we have a great lineup of guests . we will focus on the indian economy is morgan stanley's chief indian economist. let's get to markets. i get a sense i'm in the wrong color today.

of course, it is an everything rally. avril: it is a fed party. a lot of green on the screen. this fed theme is coming through. take a look at the e.m. asia fx, particularly the korean won. the yen also climbing. helped along by comments and parliament. he is striking a neutral tone, avoiding dovishness. after japan comes back from that holiday, we are seeing stocks are really rallying hard today. the msci asia pacific is hovering at a level we haven't seen in two years. tech is leading the charge. it's all the long not just by the fed but also the ai theme. that's boosting the likes of the kospi as well as the nikkei. it's going into the lunch break upwards of 40,500. we are also seeing risk appetite coming in for bitcoins as well

as brent. china, maybe you are in the right color for that. china is a laggard today. haslinda: it is ai driven as well. avril: the question is turning into, given how the fed as well as the ai theme is playing out. how long can the mag seven keep up the broader rally in the ai theme? it seems like the music keeps going. we have a general optimism around the chips especially after micron surprised with its revenue forecast thanks to strong ai demand that it expects. that's lifting the broader chip sector in the asia-pacific. our colleagues talking about for the likes of samsung and sk hynix, they expect sales to recover in the first half of the year. that seems to be the general optimism around the sector.

doj set to sue the iphone maker as soon as this week for antitrust violations. those are the ones that are bit of a debbie downer on a day where everything is running higher. haslinda: china will be paying attention. thank you so much for that. the fed not concerned about the recent high inflation readings. jay powell says he's not worried as he underlines the story of easing price pressures has not changed. >> the january number which was very high, there is reason to think that there could be seasonable effects there. nonetheless, we don't want to be dismissive of it. the february number was higher than expectations. i take the two of them together and i think they haven't really changed the overall story which is that of inflation moving down gradually on the sometimes bumpy road. haslinda: equities on a tear

post fed. however, investors are pretty cautious on the outlook for u.s. stocks and treasuries. fed officials stick to their guidance on rate cuts this year. let's dig deeper. get perspective with garfield reynolds who leads the markets live coverage in asia. run us through the responses you've seen. >> yeah. thanks. tukey responses. yes, they expect that stocks will keep rallying. they don't expect that the breathtaking pace we've seen so far this year, up 10% or so so far, can possibly continue. in fact, by the end of the year, the s&p 500 will be just about 5400. that's only a 4% gain from where we are. so that's a significant slowdown in the pace to come. meanwhile, bonds can be expected probably to rally at some stage.

but there's a strong constituency for the idea that the worst has yet to come when it comes to the bond market. the 10 year yield topping out at something like 4.5%. that's more than 20 basis points above where we are right now. so plenty of skepticism about bond capacities to rally, especially in the short term. and skepticism that the current surge in stocks can continue. the one really strong reading is that the dollar's best times are behind it. it is seen at best as ending the year flat. it's already up 10% this year. that means declines from here on in. surprisingly, the yen is seen as outperforming overwhelmingly among major currencies as it comes back from those close that it's been threatening to hit

once more in the past week following the boj. haslinda: so investors growing more skeptical of the fed. you have to wonder, as we get more clarity from regulators and policymakers, that may change. >> yeah. could change. in a lot of ways, what might matter more for stocks is whether we can go want to get these very strong drivers for gains from ai and the magnificent seven. they've been the big driver so far this year. and of course, what has helped with that is that bond yields have come down considerably from the highs last year. that helps on the valuation side. even if you have yields coming down or staying stable where they are, for equities to keep climbing from here, you need some of those rather poor earnings outlooks that analysts

and investors have been expressing, you need that or turn around. to bring it right back around to the fed, if the fed things it's going to be cutting rates three times this year, that signals it things that things are going to slow down in the economy. in that's loading economic backdrop, can you expect earnings to keep on shooting the lights out? only if nvidia and micron and the magnificent seven keep on benefiting from ai optimism. indeed, that optimism continues to lead to concrete results. haslinda: for now, that seems to be pretty much in play. garfield reynolds, thank you so much for that. by the looks of it, more pain for stocks but also bonds and the taller perhaps. will those market expectations play out throughout the rest of

the year? let's ask seth. first off, the fed. it did something really important. paved the way for rate cuts this year. >> absolutely. it was a dovish pause. this is important for the markets. the fed has cap the window open to start the rate cuts further down the road. my base case expectation is that we will see the start of rate cuts and some are -- in summer, maybe june. looking forward, the fed has acknowledged the high inflation prints. with an expectation that we are drifting lower towards the 2% target. i think it was a very important meeting which in a way is pivotal, now looking towards the easing or normalization towards lower rates. haslinda: so you buy bonds right now to lock in the rights that you have right now.

because of the expectations of a soft landing, that is what is expected? >> the room for the rate cut is based on where the real rates are. if you look at the rates where they are, you are getting tools worth 300 basis points of real rates. if you get rate cuts, you get some benefit off that. there will be a longer debate around the shape of the curve in the u.s. giving the financing. you can and potentially will see a steepening of the curve. you do want to lock in high yields. you want to have a high-yielding portfolio, maybe more concentrated in the front end of the curve. as the rate cuts start, it will give you the benefit of appreciation. haslinda: how much support are you seeing in the markets? >> in terms of the rates, i

think so far it has been extremely well behaved despite the concerns everybody has raised around fiscal financing. as we go through the pension funds rebalancing that has been happening over the last 18 months, the question will come up again in terms of the marginal buyer. there will be more concern about the long and. i think the front end well anchored. haslinda: risk premiums are so low right now. will they remain narrow? >> i do think that the term needs to go up. any asset in the world, if you have more supply coming then was undermanned is today, the marginal buyer defines the price. i think as we go into 2025, the question about who the marginal buyer for u.s. treasuries is is going to come back on the table. don't forget about the u.s.

elections which we are getting close to. as a third or fourth quarter of the year, the markets will go away from just the fed focus to where the elections are going and the potential for the fiscal financing. i think i'll along and, that comes as a question. given it is driven by the fed funds rates, it's well anchored. haslinda: our colleagues asking which assets will outperform by the end of the year. would that be fixed income? >> on the risk-adjusted basis, the front-end will do extremely well. you want to have a diversified portfolio. we have not seen this level of divergence in economic and monetary policies. you have the central bank like the u.s. and the fed where there's room to cut. you have the european central bank where there's a need to cut. more developed economies are joining that. you have the central banks rating to cut.

there has not been this level of divergence. i think it's a great asset class for me. haslinda: how do you best trade a divergence? robert: you want to take -- >> you want to take more longer duration in the economies. australia will join england. he want to take more duration. you want to expect the rates to come down and fiscal financing is there but not as much. you'd just enjoy life. haslinda: we are talking about trillions of dollars. it varies. when you see that money being mobilized, what would that take? >> an actual rate cut.

the money that is sitting in the money market, the need is based on the short end of the curve. that does not change until the fed starts cutting. once the fed starts cutting, you start thinking about the reinvestment risk. we've seen some mobilization of that money into the fixed income and other assets. but i do think that actually accelerates once the fed starts to cut. haslinda: boe, next one expected to standpat. what are you anticipating? what kind of messaging and how do you trade that? >> that's going to be a bit more balanced at this point. you've seen some improvement in inflation but not anywhere close to where it needs to be. you want to be neutral on duration here and on selloff, go longer.

haslinda: blackrock is sticking around. still to come, how the latest fed decision could influence the indian central bank. morgan stanley's chief india economist will be sharing her insights. ♪

haslinda: china's economy is struggling but its neighbor is squarely on the radar of investors as well as manufacturers. the first two decades of the 21st century were the story of china's rise. will the next to be the story of india's? the cio and head of aipac fundamental fixed income at blackrock is still with us. it seems like investors are still buying the story. >> i think it's the most transformational story in the world today. if we go back a little bit like 500 years, you would see india and china were more than 50% of the global economy. they are slowly coming back. we've seen a pause in the growth story of china. what's happening in india is quite remarkable. it's built on the stability, the demographics, the infrastructure. then it's getting the tailwind

of geopolitics. when you think of stability, you have policy and macroeconomics. it's for -- it's transformational. if you continue to see the stability, the story has 20 more years if not longer. haslinda: we are talking about stretch valuations. some people say, perhaps it's time to buy china, take money out of india, put it into china because it's been battered. we would have seen the bottom already. neeraj: that's an interesting point because that's been discussed last year and the year before. the question is, at one point -- a broken clock is right twice a day. if i think about the investor flows, portfolio flows versus fbi, the public market flows will have that tactical view around india, china, japan. we've seen some reallocation in

the last 18 to 24 months. private markets, more towards india. the fbi for sure away from china, more towards india, vietnam, mexico, malaysia, thailand. haslinda: what is the bet in india, what's the bet in china? neeraj: in india, you want to go where the long-duration assets are for writing the macro story. the public markets are stretch. it's hard to buildable case for indian public equities. although you still have the benefit of the growth rate. in the case of china, i think people underestimated the size of the growth of that economy and hence the opportunities that exist in the public market. so i would belong china here. as i said, it's harder to take a longer term view because of the policy certainty that you need. haslinda: we will see sudden t in the indian election.

modi set to come back to power. which sectors would be the ones to play? neeraj: you will see a continuation of the infrastructure build. within that, green energy, renewable power. a long way to go before india gets to the point of the scale it needs. you will have the consumer story. i like the discretionary story as the income levels are rising and you have more discretionary income going through. financial sector. it's going through a huge transformation. if you look at the financial inclusion and the digital infrastructure that's been built in india. the number of sib accounts investing in the equity markets has gone up from nowhere 10 years ago to 79 million as of last month and is growing at a couple million every month. there's a big story of financial inclusion happening. the next step will be the deepening of capital markets. haslinda: one exciting market right now is japan. we've seen how some companies have been ramping up their

presence in the japanese market. how are you looking at it? where are the opportunities? neeraj: i am externally positive on japan. if you put the same money in s&p at that point, you were up 1740%. there's a catch up game here. the key here in case of japan is a combination of nominal growth, which is going to push their earnings momentum higher. you have structural reforms which are finally happening. and then you have the tailwind of geopolitics and artificial intelligence. the technology supply chain. i would argue that japan still has a long runway if they keep their petal on structural reforms and nominal growth stays strong. haslinda: when it comes to the boj, are people expecting too much from the central bank? they've made it clear. there won't be consecutive rate rises.

neeraj: trying to take experiences from other markets and overlay on japan. i don't think that works. the story of japan is much longer. a history of deflation coming out. i think boj will be patient. i would expect one rate hike this year. if inflation really accelerates, maybe two. i don't think you are going to get an aggressive boj normalizing the monetary policy. it's not to support the echo bay market. it's to support the durability of inflation in the country. haslinda: the boj has been fairly patient. i want to touch on indonesia. funds currently pulling money out of indonesia. you say it's politics. neeraj: a lot to do with politics. obviously the decisions around the cabinet and the policy from here. one thing never to forget, and emerging markets you cannot of -- ignore politics.

as we get more clarity in terms of the cabinet, the finance ministry, the potential for the central bank, i expect interest a comeback in the local currency government bonds. in terms of real rates, it's one of the most attractive in the region. the b.i. has the most room to cut. there's a bit of history there because of the currency stability requirements. i think b.i. will not cut ahead of the fed. combination of b.i. and the political stability that comes in the next couple of quarters. i expect that interest a comeback in indonesian local -- local bonds. haslinda: that will come in october. thank you so much for your insights today. plenty more ahead. keep it here with us. this is bloomberg. ♪

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haslinda: here are some top u.s. political stories we are following. the biden administration is weighing blacklisting a number of chinese chip firms linked to huawei. sources say most of the chinese firms that could be affected have been identified as chipmaking facilities acquired or built by huawei. huawei has made technological advances despite existing sanctions including a smartphone ship many in washington thought was beyond its capabilities. president biden says $20 billion award to intel shows his supportive u.s. industries that had withered under donald trump's tenure. biden says the award will support 10,000 manufacturing jobs. biden is touting government spending a start of -- as part of his blitz as he heads into an election rematch with trump in november. >> i want to build a future in

america. my predecessor would let the future be built in china and other countries, not america. haslinda: china heading to lunch very shortly. no rally there, unlike the rest of the region. we have the csi 300 index coming down by two tents of 1%. the yuan trending at 71985. pretty flat versus the u.s. day. plenty more ahead. keep it here with us. this is bloomberg. ♪

>> i think this is a signal and the market is taking it as that. they will tolerate slightly higher inflation for longer. >> the threshold to cut rates is higher. also, they are not talking about

raising rates even though they've had this higher inflation. >> this is a fed that really wants the soft landing to continue. >> they are not willing to raise rates again. i think that's important. >> we still think we are going to cut rates this year. timing is uncertainty. >> it's much closer to a two cut scenario but they did go -- didn't go without at all. neither did the market narrative. >> they are trying to get deflation down to 2%. powell things that monetary policy is restrictive. haslinda: some of our guests on the fed maintaining its outlook for three interest rate caps this year. let's do a check in on how the fed signals are playing out in japan. april hong is here with me. avril: [inaudible] japanese markets coming back from the lunch break. let's take stock of what we've seen for japan assets this week. boj struck a dovish tone and the

fed signals that those rate cuts this year are still likely, relatively weekend hovering above the 150 level against the greenback. all of that is fueling what we see today. that's being boosted as well by the tech stocks thanks to the fed. also that ai theme that's playing out. the nikkei coming back from the lunch break. 1.6% higher. we did get some comments from the boj governor as he spoke in parliament. he struck a more neutral tone, less dovish than some in the markets might be expecting. we are seeing the yen moving towards that 150 level. still relatively weak. as i say, it's been good for equities today. haslinda: all green across the board. thank you. if the fed keeps the outlook for three cuts in 2024, the ecb tempering hopes for additional monetary easing after possible first cut in june.

christine lagarde reiterates the central banks decisions will have to remain data-dependent. >> we believe that our policy rate is likely at its peak for this tightening cycle. and that if the economy evolves broadly as expected, it will likely be appropriate to begin dialing pack policy restraint at some point this year. the economic outlook is uncertain however and we remain highly attentive to inflation risks. >> this implies that even after the first rate cut, we cannot pray commit to a particular rate path. however tempting that is, however much some of you would like to see it. if we are honest to our methodology, and if we have discipline in adhering to these principles, we cannot. haslinda: let's bring in mark cranfield. there we have it.

they are not synchronized anymore. market: traders don't have this up -- same discipline of supreme look -- lagarde. they want to do all the things that they were doing at the beginning of the year when people thought the fed would be cutting rates indefinitely. we had a hiccup between but we are back on track now. the surprise clearly was that going into the meeting, there had been a lot of pushback from fed people on the hawkish side of the spectrum. the way they had been speaking, the market was getting ready for the fact that dot plots would be reduced to two interest rate cuts. that was a pleasant surprise for people across asset markets. even during the press conference, jerome powell got a neutral tone there. slightly dovish but more to the neutral side. pleasant surprise because he didn't use the press conference to try to pour water on that story as well. people thinking, great. here goes the fed. they will essentially ignore

inflation numbers to a degree. it's on the right path, give or take a little bit. rates are coming down. equity market likes it. haslinda: is this rally sustainable? we talk about how the rally in the s&p is driven by tech anyway. all it takes is for it to go topsy-turvy. mark: the equity sector is special. the ai related story has driven things in such a way that we are ignoring some of the things going on in other parts of the world. if you see a sudden reversal in some of these big names, that could derail everything. there's definitely a risk there. doesn't appear -- you hear the comments from nvidia recently. in the short-term, they see sales being so good that it's strong for them. hong kong doing buybacks as well. the picture is healthy. the interest rate situation is

not going to change too much. something out of left field is always a risk. you have a general mood where people were little bit underweight because they were concerned the fed was going to push back harder. there will be money pouring into the market here. they could see daylight between here in midyear. one quarter ahead, they could see blue skies. that's good enough for now. haslinda: for the bond market, lock it in. mark: yes. again, you have big yield curve play going on as well. because of the fact that the fed kept three cuts for this year but also retain three for next year as well. we've seen a little bit of the treasury curve being inverted. we saw a little bit come out. there's a long way to go in that trade. if you think that the fed is going to achieve all those cuts it's projecting, then the two year yield can come down more relative to the longer end of the curve. that in itself is going to keep

a lot of money flooding back into bonds. haslinda: surely there's a risk. is it terribly underpriced? on the back of that, you see prices getting to record highs right now. mark: it's a relative game for people and those kind of sectors. they look at what's happening in cryptocurrencies, still very hot. gold doesn't look particularly expensive compared to that. if you tell people that interest rates are capped and heading lower, that's a supportive backdrop for gold. it loves it when the u.s. dollar is weaker. also positive for metals in general. so those things are falling into place. the central bank has been buying as well. surprisingly, flows have been going out of etf's. in the past couple years, that has been a big drag on the gold market. they seem to be eight ignoring it. if there's a form of feeling, that's even more positive for gold as well. haslinda: thank you. mark cranfield.

let's do a check on tencent as well as -- after their earnings. tencent was a marginal beat. that shift towards high-margin ads set to drive earnings through 2024. domestic game sales missed but that was pretty much expected. tencent up 1.4%. also a beat. it did reiterate further sales growth this year despite china's car market slowing due to weaker consumer spending. as we said, tencent planning to double its stock buyback program this year. it posted a lower-than-expected -- expected revenue due to soft domestic game sales. let's get more with robert lee. what is your take on those numbers? robert: you said it all in your intro. i'm not sure what else i can add. domestic games have been a

source of weakness through the last year. whilst in all honesty the revenue numbers did come through, weaker than expected. we saw a shift towards high-margin businesses driven by short videos. driving 150 basis points in the gross margin level. the overall numbers were 1% ahead or so. i think it became apparent that the drivers that we saw coming through in q4 is what is likely to continue to drive the company answer fundamental earnings through 2024. we take comfort from that. haslinda: i apologize for stealing your thumper. how did the q4 results impact the company outlook for 2024? >> as i said, it gave confirmation as to the themes

that we've been identifying that are likely to continue driving the company through this year. again, short videos with a shift towards many games as well which is a particularly high-margin business. underlying earnings and helping support and driving further likely increases on the gross margin side. there's been a lot of comment about the game sector. i'm not in denial that there are weaknesses. some of it is self-inflicted because the company took their eye off the ball. domestic games is only 17% of tencent's revenue. beat consensus expectations by 150 basis points. the ongoing drivers is what is going to drive the earnings and

the company for the rest of the year. adding a little bit of icing on the cake perhaps. haslinda: when we last spoke, we talked about how you added tencent to the focus lift. has is concerned -- confirmed your view on that? robert: yes. one never wants to be complacent. you have to keep an open mind and an open view to things. no. i think the fundamental drivers are in place. the q4 numbers confirmed that. as i said, games is a percentage of the revenue. it's decreasing. they are putting in place a measures to try to drive better monetization from their domestic games business. domestic games is only 70% of revenue. if you think about back to 2017 as well, so is considerably smaller than it was as a percentage of overall revenue.

there are new drivers emerging within the business which are a lot -- they have a better secular growth outlook and potentially higher margin in the long run. i think that's where investors should be focused. the fact that the stock is up today confirms that i think overall the market is taking these results quite positively. haslinda: thanks for that. he was right in his takes. you want to listen to him. tencent out of with -- i with earnings. china citibank as well as ck assets as well. it's going to be a busy day ahead for earnings. the hang seng index up 1.8%. still to come, a deep dive into the indian economy with morgan stanley. we get thoughts on the r.b.i.s next move after the fed helped rates for a fifth straight

meeting. keep it here with us. this is bloomberg. ♪

haslinda: welcome back to bloomberg markets: asia. you are watching india focus. two minutes to the start of the indian session and futures are

pointing to a higher open, not surprising given the haute -- huge rally we are seeing in asia. the index up about 2%. the sensex pointing up by 6/10 of 1%. in terms of the currency, 8305 is the level we are looking at right now. the ruby up about 1/10 of 1%. it's about the fed sticking to its path of interest rate cuts despite the recent pickup and inflation. meanwhile, the bank of india appears to be concerned that inflation will be slow to fall to its 4% medium-term target. are the chances of a rate cut by the r.b.i. distant now? let's bring in the chief economist at morgan stanley. good to have you with us. what are we looking at? >> thank you for having me. yeah. i think india's inflation and growth numbers are moving in

line with expectations. we are seeing growth trends which are surprising on the upside. growth momentum remains stronger-than-expected. on the inflation side, inflation has been moderating. we've seen the numbers go down from the above 6% level that we saw last year to around 5% now. also the silverlining being that core inflation has been moderating at well -- as well. so in that sense, we do think that inflation will average at 4.5% in 25 pig get that's in line with the r.b.i.s population numbers as well for cpi inflation that they expect in 25. so on the face of it, moderating inflation trend will open up the opportunity for a shallow easing cycle in our view, probably sometime in the latter part of fiscal 25.

but we've been highlighting risks of a delayed start, primarily driven by this offbeat growth we've seen in the last couple of quarters. surprising us and consensus to the upside. they've been revising numbers higher for fiscal 24. in that context, we will probably be looking at the risk of a delayed start in our view. haslinda: under what circumstances do you think the r.b.i. might just bring forward its rate cuts? how closely is it watching the fed? >> global developments will have some impact on the reaction function. having said that, domestic inflation and where we are on the inflation cycle will have a larger bearing on the r.b.i. reaction function. so the question that you pose,

that will primarily be driven by the inflation trajectory. we note we have to keep inflation between two to six percent. by r.b.i.s on forecast for fiscal 25, inflation is averaging a 4.5%. we will probably see a number close to 4% in our view in the september quarter. that's being driven by the base effect. so i think it will be a faster than anticipated drop in inflation. that which looks more sustainable that may flow through. haslinda: you talked about core inflation which is falling. in fact, at the lowest level. should the r.b.i. be paying more attention to core versus food inflation which is pretty much demand driven? >> from an analytical

perspective, definitely core inflation -- there are metrics to track core inflation. it has been citing that in the monetary policy documents. the moderation of core inflation bodes well. it shows the tightening of the r.b.i. post-pandemic and the normalization is having some impact on the inflation trend which is influenced by monetary policy. the mandate for the r.b.i.s headline inflation is driven by the fact that food still accounts for a very shy hair -- i share in the consumption baskets of households. food inflation can influence household inflation expectation. that's where it stems from. the focus and mandate to keep headline inflation lower and not just look at core inflation.

because household inflation expectations can get influenced a lot more by the trends in food inflation. food inflation shocks tend to be systematic and recurrent. their impact on headline inflation also starts to be not just temporary. therefore the focus continues on headline inflation in the context of how the consumer spending patterns are in india. haslinda: what does it all mean for growth? the r.b.i. says close to a percent is possible. we also know that part of the growth has been driven by money that's been pumped into the equity markets. now with investors reassessing their money in that market, perhaps pulling it back, putting it back to china, how would that put the growth target at risk? robert: -- >> when you look at the drivers of growth in the cycle, what you are seeing is that growth is being driven by a

pickup in capex. capex investments have been the front runner amongst all the drivers of growth. this is what we saw in the 12 -- 2003 to seven cycle as well. if you look at the gdp growth, it's the industrial segments which have been driving growth higher. in that context, it's actually a pretty solid start to the growth cycle. because that's how productive growth cycles start. you see a pickup in capex and that momentum helps to create more jobs. in india with the demographic to evergrande -- dividend that we talk about, you need to create warm -- more well-paying jobs. i'm not too worried about flows to equity markets. we think this is a sustained expansion cycle that we are looking at for india this time.

haslinda: how about the impact of india being included in the jp morgan bond index? what does it mean for the ruby for interest rates? >> so the bond index inclusion is obviously good news from a flows perspective. given india's current account deficit has also been moderating or narrowing in the last 12 months. it's a positive for the balance of payments overall. so the bond index flows are expected to be staggered. our team expects these to be around 25 to $30 billion as the bond index inclusion starts from june this year to the fiscal year when it should include. that will be positive from interest rate and repeat perspective as well. just because it improves the demand supply dynamics of the government secured he market. also it further includes the

balance which remains pretty robust. robert: haslinda: do you think -- haslinda: do you think the increased flows could be absorbed by the r.b.i.? >> it will be staggered. the weight of the indian bonds would increase by about 1% every month. the flows will therefore be 2.5 to $3 billion every month. in that context, it should not be a big challenge for the r.b.i. to absorb this, given the size of the government borrowing as well. it may have some transient issues with liquidity management. they have many tools in their liquidity management. that toolkit will help them to manage those issues like reliance and other such measures. i don't for see that it will be a big challenge, given that it will be staggered. haslinda: great insights. plenty more ahead. keep it here with us. this is bloomberg.

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haslinda: it's a party in a shop. tracking gains in the u.s. after

the fed kept rates unchanged, highlighting that the dot plot pretty much intact at three cuts despite the rise in the estimate. powell did say again, he wants to see more evidence inflation is coming down. the hang seng index up 1.7%, lifted by tech stocks. nikkei 225 back from that holiday yesterday, up by 1.5% as well. gains across. speaking of tech. we are tracking chip stocks in particular. that's on the back of micron technology giving a third quarter forecast that's much stronger than expected. reported second-quarter results that search past expectations. micron surged up to 15% in extended trade. tokyo electron trading up. sk hynix also in the positive. up more than 8%.

let's do a check on u.s. as well as european assets. we are expecting the boe decision. it's expected to keep rates unchanged at 5.25%. futures pointing to a higher open. of course, we know that rates are at a 16 year high. poa -- boe set to come up with this decision after the fed. that's it from bloomberg markets asia. daybreak middle east and africa is next. keep it here with us. this is bloomberg. ♪

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