Core Viewpoint - The Federal Reserve has lowered the federal funds rate target range by 25 basis points to 4.00% to 4.25%, with expectations of two more rate cuts this year, bringing the total to three [2]. Group 1: Market Reactions - Following the Fed's announcement, Asian markets showed active performance, with stock markets in Japan and South Korea reaching new highs [2]. - The MSCI Asia-Pacific Index has risen over 20% year-to-date, while the S&P 500 Index has increased by approximately 12% [2]. Group 2: Investment Trends - There is a notable influx of funds into Asian markets as global investors seek alternatives to U.S. equities, driven by concerns over the credibility of U.S. institutional arrangements and overall returns on U.S. assets [2]. - The weakening of the U.S. dollar has made Asian currencies an attractive investment choice, with nearly 30% of the asset management scale in local currency markets having flowed in since the beginning of the year [3]. - The primary drivers for the influx into Asian local currency bonds include de-dollarization, diversification needs, and expectations of appreciation in Asian currencies [3]. - With the Fed entering a loosening cycle, it is anticipated that capital will continue to flow into Asian markets [3].