Asian equities varied as US stocks hit historic highs
Asian shares exhibited a mixed performance on Thursday amid thin holiday trading, as the majority of markets in the region and beyond remained closed for Christmas. In Tokyo, the Nikkei 225 experienced a slight decline, losing less than 0.1 per cent to settle at 50,317.43. It has experienced an increase of nearly 30 per cent this year. The dollar decreased to 155.70 Japanese yen, down from 155.94 yen. The euro remained steady at $1.1780. Markets in mainland China experienced an uptick, as the Shanghai Composite index rose by 0.3 per cent. The exchange in Hong Kong was closed. Investors found reassurance in a statement from the People’s Bank of China, the nation’s central bank, which vowed to maintain an adequate money supply to bolster financing, economic growth, and inflation objectives. Earlier in the week, the PBOC chose to maintain its key short-term lending rates without alteration.
Trading activity was notably subdued as markets wrapped up early for Christmas Eve and will remain closed on Thursday for Christmas. On Wednesday, approximately 1.8 billion shares changed hands on the New York Stock Exchange, representing about a third of the typical trading volume. US markets are set to reopen for a complete day of trading on Friday; however, trading volumes are expected to remain subdued this week, as most investors have likely finalized their positions for the year. The S&P 500 has risen over 17 percent this year, as investors have welcomed the deregulatory measures of the Trump administration and expressed optimism about the potential of artificial intelligence to enhance profits for both technology firms and Corporate America.
In the coming weeks, investors will concentrate on the trajectory of the US economy and the Federal Reserve’s decisions regarding interest rates. Investors are wagering that the Fed will maintain its current stance on interest rates during the January meeting. The US economy experienced a robust growth of 4.3 percent annual rate in the third quarter, marking the fastest expansion in two years, propelled by consumers who persist in their spending habits despite significant inflationary pressures. Recent reports indicate a wavering confidence among consumers who are concerned about elevated prices. The labor market has shown signs of slowing, and there has been a noticeable decline in retail sales. The number of Americans applying for unemployment benefits decreased last week and continues to hold at historically robust levels, even amid indications of a weakening labor market.
The Labor Department reported Wednesday that US applications for jobless claims for the week ending Dec. 20 decreased by 10,000, bringing the total to 214,000, down from the previous week’s figure of 224,000. This figure falls short of the 232,000 new applications anticipated by analysts. Dynavax Technologies experienced a remarkable increase of 38.2 per cent following Sanofi’s announcement of its acquisition of the California-based vaccine maker in a transaction valued at $2.2 billion. The French drugmaker will incorporate Dynavax’s hepatitis B vaccines into its portfolio, along with a shingles vaccine that is currently under development. Novo Nordisk’s shares increased by 1.8 percent following the approval from US regulators for a pill formulation of its highly successful weight-loss drug, Wegovy. Nonetheless, Novo Nordisk shares have experienced a decline of nearly 40 per cent this year, as the company contends with heightened competition in the weight-loss medication market, especially from Eli Lilly. Shares of Eli Lilly have increased by 40 percent this year. US crude oil closed at $58.35 a barrel, while Brent crude finished at $61.80 a barrel.
