Asian stocks are poised to gain, driven by a buoyant session on Wall Street where the S&P 500 advanced for an eighth straight day, its longest winning streak this year. Tokyo equity futures climbed more than 1.5%, with smaller increases in Hong Kong and Sydney. The rally was fueled by bets that the Federal Reserve will soon signal it’s ready to start cutting interest rates.

The US market’s optimism has reinvigorated investor confidence, despite a bumpy stretch in July and August. The S&P 500’s gains have been broad-based, with an equal-weighted version of the US equity benchmark hitting an all-time high. The Russell 2000, which tracks smaller firms, added 1.2%.

In Asia, focus will be on whether the yen will continue to surge against the greenback, ahead of Bank of Japan Governor Kazuo Ueda’s appearance in parliament on Friday. The rally in the yen has been significant, outperforming most of its peers in the Group of 10.

The Federal Reserve’s upcoming commentary at the Jackson Hole economic symposium will be closely watched for confirmation that it will lower rates in September. However, more drama surrounds what happens after that and the pace of additional cuts over the next several months as the Fed confronts the dual risks to both inflation and employment.

Treasury 10-year yields fell one basis point to 3.87%, while the dollar hit its lowest level since March. Oil prices sank about 3%. Secretary of State Antony Blinken announced that Israeli Prime Minister Benjamin Netanyahu has accepted a cease-fire proposal for Gaza, with the next important step being for Hamas to say yes.

Equity positioning is back up to moderately overweight, a week after sliding to underweight, according to Deutsche Bank AG strategists. Recent economic data and earnings readouts have reinvigorated confidence among JPMorgan Chase & Co. traders that US stocks can rally into the end of the year.