Asian stock markets exhibited a generally upward trend on Thursday, buoyed by mixed signals from Wall Street the previous night. This optimism stems from anticipated interest rate adjustments following the US inflation data release, which aligned with expectations. Confidence is mounting that the US Federal Reserve will reduce interest rates by a further quarter-point in the upcoming week. Nonetheless, ongoing tensions in the Middle East continue to pose challenges for the markets. On Wednesday, Asian markets closed with mixed outcomes.
According to CME Group's FedWatch Tool, there is currently a 98.6% probability that the Federal Reserve will implement a 25 basis point rate cut during its December meeting.
In Australia, the market trimmed its early gains to trade slightly lower by mid-session on Thursday, maintaining a downward trajectory from the previous two days, influenced by Wall Street's varied signals. The S&P/ASX 200 remains significantly below the 8,400 threshold following positive domestic jobs data, which has lessened expectations of an early rate cut in 2025.
The S&P/ASX 200 Index is down by 16.20 points or 0.19% at 8,337.40, with trading fluctuating between 8,386.40 and 8,327.90 during the morning hours. The wider All Ordinaries Index has decreased by 13.30 points or 0.15% to 8,597.10. Notably, Australian stocks also fell on Wednesday.
In the mining sector, Mineral Resources is up by nearly 1%, while Fortescue Metals, BHP Group, and Rio Tinto are marginally down by 0.1% to 0.5% each.
Oil stocks are mostly trending downwards; Woodside Energy and Santos have dipped by 0.1% to 0.3%, whereas Origin Energy has seen a drop of over 1%. Conversely, Beach Energy has surged nearly 10%.
Regarding technology stocks, Afterpay owner Block and Appen have risen by over 4% each, while Zip and WiseTech Global increased by more than 1%. Xero has gained 1.5%.
Among the four major banks, Commonwealth Bank, ANZ Banking, Westpac, and National Australia Bank have each slid by 0.1% to 0.3%. Meanwhile, in the gold mining sector, Gold Road Resources is up by 0.2%, Resolute Mining rose by more than 2%, and Newmont is up by over 1%. Northern Star Resources has decreased by nearly 1%, with Evolution Mining remaining stable.
Economically, Australia's unemployment rate fell to a seasonally adjusted 3.9% in November, a decline from October's 4.1% and below forecasts of 4.2%, as reported by the Australian Bureau of Statistics. The participation rate was 67.0, marginally lower than anticipated 67.1%.
In currency, the Australian dollar is trading at $0.641 on Thursday.
The Japanese stock market extended its gains for the fourth consecutive session, registering a sharp increase on Thursday, following Wall Street's mixed cues. The Nikkei 225 is hovering just below 39,900 after surpassing the 40,000 mark earlier, with robust performances across most sectors led by major stocks, exporters, and tech companies.
The Nikkei 225 Index closed the morning at 39,881.10, up by 508.87 points or 1.29%, after achieving a high of 40,091.55 earlier in the session. On Wednesday, Japanese shares saw a slight increase.
Prominent companies such as SoftBank Group rose by over 2%, while Fast Retailing, the operator of Uniqlo, improved by more than 1%. Toyota advanced by over 1%, although Honda decreased by 0.4%.
In the tech sector, Advantest has gained over 4%, Tokyo Electron has added more than 1%, while Screen Holdings inched down by 0.1%.
In the banking sector, Mizuho Financial has gained almost 1%, Sumitomo Mitsui Financial increased by 0.2%, and Mitsubishi UFJ Financial added more than 1%.
Among the key exporters, Canon rose by 1.5%, Panasonic added over 1%, and Mitsubishi Electric and Sony surged by almost 3% each.
Other notable gainers include Fujikura, which surged by more than 5%, and DeNA, which gained over 4%, with Chubu Electric Power and Recruit Holdings adding nearly 4% each. Mitsubishi Electric, Furukawa Electric, and Rakuten Group rose by more than 3% each, while Aeon, Mitsubishi Heavy Industries, NTT Data, Sumitomo Metal Mining, Osaka Gas, and Shimizu all advanced nearly 3% each.
There were no significant losers recorded.
On the foreign exchange front, the US dollar is trading in the lower 152 yen range on Thursday.Across Asia, stock markets showed a mixed performance. Hong Kong, Singapore, South Korea, and Taiwan saw modest gains, rising between 0.1% and 0.9% each. In contrast, New Zealand and Indonesia experienced a decline of 0.5% each, and China's market remained relatively stable. On Wall Street, stocks made a notable upward shift on Wednesday, bouncing back robustly after a weak start to the week. The tech-centric Nasdaq particularly stood out by crossing the 20,000 mark for the first time with a significant rise.
The Nasdaq advanced by 347.65 points, marking a 1.8% increase, to reach a new record closing high of 20,034.89. Similarly, the S&P 500 increased by 49.28 points or 0.8%, closing at 6,084.19. Meanwhile, the Dow struggled for direction throughout the session and eventually closed down by 99.27 points or 0.2%, at 44,148.56.
Turning to Europe, the major markets were on the rise for the day. The French CAC 40 Index increased by 0.4%, while both the German DAX Index and the U.K.'s FTSE 100 Index saw a 0.3% climb.
On another front, crude oil prices closed higher on Wednesday. This was attributed to potential European Union sanctions on Russia, anticipation of heightened demand from China, and reports showing a surge in gasoline stockpiles. West Texas Intermediate crude oil futures for January concluded the trading day with an increase of $1.70, or 2.5%, setting the price at $70.29 per barrel.
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