Asian markets rebound on dovish Fed bets

Asian markets rebounded on Friday, driven by a dovish shift in Fed rate hike expectations and positive regional economic data.

Key events included a 0.5% rise in the MSCI Asia Pacific Index, led by tech stocks, as investors bet on a slower pace of U.S. interest rate increases following a lukewarm U.S. jobs report. The U.S. dollar was on track for its largest weekly drop since March. Additionally, regional activity gauges pointed to economic expansion in June, boosting sentiment.

The tech sector was notably resilient, with companies like Samsung Electronics and Taiwan Semiconductor Manufacturing Company gaining ground. The U.S. dollar's weakness also benefited exporters, while easing geopolitical risks supported broader market gains.

Investors should monitor the upcoming U.S. non-farm payrolls report on July 8 and the Fed's next policy meeting on July 26-27 for further clarity on rate hike expectations. Additionally, regional PMIs and Chinese economic data releases will provide insights into the health of the Asian economy.