The Federal Reserve’s widely anticipated pivot to interest rate cuts this week is likely to bolster emerging market assets in Asia, further extending their recent lead over global favorites such as Japan and chip stocks.

Smaller Southeast Asian markets may continue to do better than larger ones, while a significant rise in the yen might cause volatility in the Japanese market and high-performing chip stocks. Fear of an unwind in the yen carry trade has the potential to hit markets globally.

Investors are split on whether the Fed will kick off its easing campaign with a standard 25-basis-point cut or a larger one. A half-point reduction may raise doubts about the health of the U.S. economy, outweighing any enthusiasm about a stimulatory effect from the cut.