Waller highlighted signs of cooling inflation, suggesting that recent data could support holding rates steady at the upcoming Federal Open Market Committee meeting. This pivot in expectations fueled a risk-on sentiment across regional exchanges. South Korea’s Kospi climbed 1.3%, Japan’s Nikkei Stock Average gained 0.9%, and Australia’s S&P/ASX 200 index added 0.2%.

The yen emerged as the session’s primary mover, appreciating against the dollar and other major currencies. The dollar fell to 155.63 yen, touching its lowest intraday level since August 3. The surge follows hawkish commentary from Bank of Japan policy board member Hajime Takata and public support from U.S. Treasury Secretary Scott Bessent for a stronger yen. Markets are now fully pricing in a 25-basis-point rate hike from the Bank of Japan this month, with some investors anticipating an even more aggressive move. According to Rodrigo Catril of National Australia Bank, this represents a fundamental repricing driven by a coordinated effort between U.S. and Japanese officials to bolster the currency.