Asia Markets Climb on Wall Street Gains Amid Federal Reserve Rate-Cut Hopes
Asia-Pacific stock markets mostly climbed Thursday, buoyed by Wall Street’s overnight gains and renewed hopes that the U.S. Federal Reserve could reduce interest rates next week. Investors reacted to weaker-than-expected U.S. employment figures, with private companies cutting 32,000 jobs in November compared to economists’ forecast of a 40,000 gain. This slowdown has driven market sentiment toward an almost 90% probability of a Fed rate cut during the December 9-10 meeting.
Japan’s Nikkei 225 surged 2.33% to close at 51,028.42, while the Topix index rose 1.92% to 3,398.21. Industrial and technology stocks drove the gains, with Fanuc soaring over 12% following a partnership announcement with Nvidia. SoftBank continued its rebound, climbing more than 9%, while semiconductor companies Lasertec and Renesas Electronics advanced sharply on acquisition talks and positive market sentiment.
Not all Asian markets mirrored Japan’s strength. South Korea’s Kospi fell 0.19%, and the Kosdaq slipped 0.23%. Australia’s ASX/S&P 200 gained 0.27%, while Hong Kong’s Hang Seng added 0.68%, and China’s CSI 300 climbed 0.34%. India’s Nifty 50 and BSE Sensex remained mostly flat, with the Indian rupee hitting a record low of 90.4 against the U.S. dollar, marking three consecutive days of record weakness.
IndiGo, India’s largest airline, saw its shares drop as much as 3% following multiple flight cancellations due to adverse weather, operational issues, and updated rostering rules. Flight disruptions extended into a fourth day, affecting over 70 departures at Bengaluru airport and adding pressure on local market sentiment.
Overnight, the Dow Jones Industrial Average rose 408 points, or 0.86%, to 47,882.90, while the S&P 500 and Nasdaq gained 0.30% and 0.17%, respectively. U.S. technology stocks with exposure to artificial intelligence were the largest drag, after a report suggested Microsoft was cutting AI-related software sales quotas. The company denied the claims, briefly stabilizing its stock in after-hours trading, highlighting the ongoing volatility in the tech sector.
source: cnbc