Asian markets are projected to strengthen on Thursday, following Wall Street's rally, which has risen four consecutive days ahead of the Thanksgiving holiday. Japanese and mainland Chinese index futures signaled a positive opening, while Australian stocks rose earlier in the session and Hong Kong's were flat. In the US, the S&P 500 rose 0.7% and the Nasdaq 100 gained 0.9%, supported by expectations of an imminent Fed rate cut.
Financial markets are now pricing in around an 80% chance of a 25 bps rate cut next month, with three more cuts planned by the end of 2026. The Fed's Beige Book report showed US employment weakening slightly, prices rising moderately, and consumer spending weakening except in the upper-class segment. Initial jobless claims actually fell slightly, making the economic picture appear mixed, but not strong enough to derail the chance of a rate cut on December 10th. The dollar index fell for three consecutive days, while gold and long-dated bonds strengthened.
In crypto assets, improving sentiment pushed Bitcoin back above US$90,000 for the first time in nearly a week, after being pressured by a sell-off for about a month. This movement came amid easing volatility, new inflows into US Bitcoin ETFs, and increasing market risk appetite. Overall, this cross-asset movement reflects cautious optimism that the Fed's stance will become increasingly dovish.
Globally, several other factors also influenced sentiment. In Japan, Prime Minister Sanae Takaichi's government plans to issue more bonds to finance its stimulus package. In China, China Vanke proposed delaying local bond payments, while Hong Kong's New World Development received additional support for a bond swap scheme. In the UK, Chancellor Rachel Reeves expanded the fiscal buffer to £22 billion through tax increases, boosting the pound and government bonds. In commodity markets, oil prices weakened slightly as the market monitored US efforts to promote peace between Russia and Ukraine and awaited the OPEC+ meeting later this week. (asd)
Source: Newsmaker.id
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