Fed Rate Change Expected to Drive Huge Rise in Asian Assets

The Federal Reserve’s decision to cut interest rates bodes well for Asian assets, as many are undervalued and have better earnings prospects and more room for easing than their global counterparts.

The central bank’s decision to cut its benchmark rate by 50 basis points isn’t so much a pessimistic view of the U.S. economy as better insurance against a soft landing, fund managers and strategists say. The change in direction will help offset many of the negatives facing Asian assets, including high valuations, a slowdown in China and rising trade tensions, they say.