Asia can become the engine of the global economy. A possible interest rate cut in the Us makes Asain markets even more attractive to investors with the cost of money in the US declines. A signal for another decrease of the federal feds fund was given by the durable goods orders report, which showed a bigger than expected decline. Demand for goods produced in the US declined by 4.9% while analysts expected only a 4.0% drop. After news that China will award new mobile-phone licenses, China Mobile surged lifting the Hange Seng Index.

The Morgan Stanley Capital International Asia-Pacific Index jumped 2.2% to 162.09. That is a new record all-time high. The Japanese benchmark index, the Nikkei 225 advanced 2.4% to 16,832.22 on a weaker yen that lifted shares of big exporters including Sony. Hang Seng Index, Hong Kong’s stock average, climbed 2.4% reaching a new all-time high at 27,065.66 even though markets were closed due to a holiday.

Expectations that the Fed might decrease interest one more time caused financial companies to rally. The second-biggest banks in Japan, Mizuho, gained 4.8% to 658,000 yen while the third-largest, Sumitomo Mitsui Financial Group, rallied 7.0% to 891,000 yen. China Mobile added 6.5% lifting the Hong Kong’s index. The Hong Kong’s index has been gaining throughout the whole year adding 18.0%. The main reason is the expected inflow of new capital from mainland China after the Chinese government allowed citizens to invest in Hong Kong.

Adam Narczewski