Asian Markets Surge as S&P 500 Reaches New High on Robust US Growth
Asian markets largely moved upward on Wednesday, following the benchmark S&P 500’s achievement of yet another record high. This surge came in the wake of a report indicating that the US economy expanded at an unexpectedly robust annual rate of 4.3 percent from July to September. The initial estimate of growth from the US government for the third quarter indicated that inflation continued to be elevated, while another report revealed a further decline in consumer confidence in December. The US economy experienced an expansion at an annual rate of 3.8 percent during the April to June period. Trading activity in Asia was subdued, as numerous global markets were set to close on Thursday in observance of Christmas. On Wednesday, markets in the US will close early in observance of Christmas Eve and will remain shut for Christmas Day.
Tokyo’s Nikkei 225 remained steady at 50,411.10, while South Korea’s Kospi experienced a slight decline of 0.1 per cent, settling at 4,113.83. In Chinese markets, Hong Kong’s Hang Seng increased by 0.2 percent, reaching 25,818.93. The Shanghai Composite index increased by 0.2 percent, reaching 3,929.25. In Australia, the S&P/ASX 20 experienced a decline of nearly 0.4 per cent, settling at 8,762.70. Markets in Hong Kong and Australia concluded trading early in observance of Christmas Eve. Taiwan’s Taiex saw a slight increase of less than 0.1 per cent, while India’s Sensex recorded a gain of 0.1 per cent.
Gold and silver continued their ascent after reaching record highs this week, propelled by increased geopolitical tensions. The price of gold increased by 0.4 per cent early Wednesday, reaching USD 4,525.50 per ounce, contributing to an impressive gain of approximately 70 per cent for the year. Silver increased by 1.8 percent. US futures dipped slightly early Wednesday. On Tuesday, significant advancements in tech stocks propelled the S&P 500 to a 0.5 percent increase, despite the fact that the majority of stocks within the index experienced declines. The closing figure stood at 6,909.79. The Dow Jones Industrial Average increased by 0.2 percent, reaching 48,442.41, while the Nasdaq composite climbed 0.6 percent to 23,561.84. NVIDIA advanced by 3 percent, while Google’s parent company, Alphabet, edged up by 1.5 percent. Novo Nordisk surged 7.3 percent following the approval from US regulators for a pill version of the weight-loss drug Wegovy, marking the introduction of the first daily oral medication designed to treat obesity. The government’s update on the economy revealed that inflation remains elevated beyond the central bank’s preferred levels. The Federal Reserve’s preferred inflation measure, known as the personal consumption expenditures index, or PCE, rose to a 2.8 percent annual rate last quarter, an increase from 2.1 percent in the second quarter.
On Wednesday, the Labour Department is set to unveil its weekly data on applications for jobless benefits, serving as an indicator of layoffs in the US. Investors are placing their bets that the Fed will maintain its current stance on interest rates during the January meeting. Recent reports indicate elevated inflation levels and a fragile sense of confidence among consumers concerned about rising prices. The labour market has shown signs of slowing, while retail sales have experienced a decline. In other dealings early Wednesday, the dollar continued to decline against the Japanese yen, following statements from officials indicating they could intervene in response to excessive fluctuations in the yen. The dollar was trading on Wednesday at 155.96 yen, a decrease from 156.17 yen. The euro declined to USD 1.1793, down from USD 1.1796. Oil prices saw a slight increase as traders monitored potential supply disruptions in Venezuela and Russia. US benchmark crude oil increased by 7 cents, reaching USD 58.45 per barrel. Brent crude increased by 3 cents, reaching USD 61.90 per barrel.
