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The state of the Asian stock markets during the session on December 6th.
Asian stock markets recorded gains on Wednesday, mainly propelled by the weak U.S. labor market conditions, leading many investors to believe that the Federal Reserve (Fed) might limit the possibility of raising interest rates in the near future.
The latest data from the Job Openings and Labor Turnover Survey (JOLTs) showed a more significant-than-expected decline in job opportunities in October, increasing expectations that the Fed may implement an interest rate cut in March. Currently, there is about a 54% chance of a 25 basis point interest rate reduction.
The yields of U.S. Treasury bonds also decreased following this information, benefiting global technology stocks. In Japan, the Nikkei 225 index was one of the strongest performers in Asia, with an impressive increase of 1.7%. This surge was mainly driven by a notable rise in stocks in the manufacturing and technology sectors.
It marked the first reversal of the index’s downward trend in three consecutive days, pressured by a strong yen causing difficulties for export-oriented stocks.
In Australia, despite new economic data indicating lower-than-expected growth in the third quarter, the ASX 200 index still rose by 1.4%. This could be explained by the strength of certain aspects of the economy, particularly domestic demand and spending, compensating for the sharp decline in exports.
South Korea’s stock market (KOSPI) also experienced a slight increase, with a growth rate of 0.5%. Meanwhile, shares of the entertainment conglomerate YG Entertainment Inc (KQ:122870) surged over 20% following the announcement of contract extensions with all four members of the popular girl group Blackpink.
The Chinese stock market has experienced a notable surge, but Moody’s warning has cast a shadow on investor sentiment, turning it increasingly negative.
In China, both the Shanghai Shenzhen CSI 300 and Shanghai Composite indices showed slight gains on Wednesday, while Hong Kong’s Hang Seng index increased by about 0.6%. However, all three indices have not fully recovered from the significant losses earlier in the year and are performing worse than many other indices in Asia.
Confidence in China’s economy faced new challenges as credit rating agency Moody’s downgraded its credit outlook to negative. Moody’s also warned of increasing economic risks due to the real estate market crisis and a lack of clear policy support from the Chinese government.
The latest data on China’s purchasing managers’ index also indicates pressure on business activities. Attention is currently focused on upcoming trade data, expected to be released on Thursday, to provide a more detailed insight into the country’s economic situation.
The Indian stock market has achieved a valuation of 4 trillion USD, propelled by election results and a strong GDP.
In the Indian stock market, the Nifty 50 futures index showed a strong opening, with the potential for further gains after achieving record highs in two consecutive trading sessions. This new market recovery in India was stimulated by the victory of the Bharatiya Janata Party (BJP) in crucial state-level elections.
This sets a positive precedent for the possibility of re-election in the 2024 general elections. Investors largely appreciate the pro-business policies implemented by the BJP during its ten years in power.
With this surge, the market capitalization of the Indian stock market has surpassed $4 trillion, bringing this world’s fifth-largest market closer to the fourth position, challenging a reshuffling in the global market hierarchy.
Investor sentiment in India is also boosted by positive GDP news. The latest data shows that the largest economy in Asia grew more robustly than expected in September, demonstrating its resilience to negative impacts from the global economic situation. This helps the Indian stock market continue to attract attention and investment from global investors.
Reference: Investing.com
By. Pham Thanh Bien
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