Mumbai, 05 Dec (Commoditiescontrol): Asian stocks displayed a mixed performance on Thursday, reflecting investor sentiment after record-breaking highs on Wall Street. The optimism was spurred by weaker-than-expected U.S. services data, which bolstered expectations of further Federal Reserve interest rate cuts.
The MSCI Asia-Pacific index, excluding Japan, dipped slightly in early trade, with losses in Hong Kong outweighing gains in Japan and Australia. Japan's Nikkei climbed 0.6% to reach a three-week high, while Hong Kong's Hang Seng fell 0.8%. Meanwhile, Australia's ASX 200 registered modest gains, supported by the rally in mining stocks.
Wall Street reached new peaks overnight, with the S&P 500, Nasdaq, and Dow all setting records. Bitcoin, often regarded as a sentiment gauge, edged closer to the $100,000 mark, trading at $98,200 in Asia's morning hours.
Market speculation about interest rate cuts has intensified, with traders pricing in a 75% probability of a December cut and additional easing in 2025. Federal Reserve Chair Jerome Powell, speaking on Wednesday, acknowledged the U.S. economy’s resilience without challenging market expectations for rate reductions. Earlier in the week, Fed Governor Christopher Waller signaled his inclination for a December cut.
The U.S. Institute for Supply Management's (ISM) services report revealed a slowdown in activity for November, dampening Treasury yields. Benchmark 10-year Treasury yields declined three basis points to 4.182% and remained steady in Asian trading. S&P 500 futures dipped slightly, while European futures fell 0.3%, despite Germany's DAX reaching record highs.
In currency markets, the dollar softened alongside U.S. yields. The euro was pinned at $1.0514, weighed down by political uncertainty in France following a rare government confidence vote loss. The Japanese yen firmed slightly to 150.31 per dollar, while the Australian dollar struggled at $0.6420 after disappointing GDP data.
In commodities, Brent crude futures edged up 0.2% to $72.42 a barrel, supported by anticipation of an OPEC+ decision to extend production cuts. Gold held steady at $2,649 per ounce, while iron ore prices benefited from lingering hopes of Chinese stimulus.
South Korea's financial markets showed stability despite recent political turmoil, including the president’s failed attempt to impose martial law, which briefly unsettled investors. Overall, global markets remain focused on upcoming U.S. employment data, which could reshape economic outlooks and influence bond markets.
(By Commoditiescontrol Bureau: 09820130172)
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