"Stocks Surge as Rate Cut Prospects Drive Morning Rally"

Asian markets have started the week on a positive note, shrugging off concerns about rate hikes and instead pricing in early rate cuts. Major equity indices are in the green, with South Korea surging 4% due to a short-selling ban. US equity futures and Treasuries have stabilized after last week's gains, while investors wait to see if yields can continue their bull rally. The benign payrolls report and strong productivity suggest that unemployment does not need to rise significantly to keep inflation in check. Markets are confident that inflation will continue to slow, leading to expectations of central bank easing. The Federal Reserve and the European Central Bank are both expected to start cutting rates, while the Bank of Japan is gradually moving closer to its inflation target. The Reserve Bank of Australia may resume hiking rates, and the US dollar could be entering a downtrend as the days of US economic exceptionalism may be numbered.