Asian Markets Surge Following a Winning Streak
Asian shares experienced an uptick on Thursday, drawing inspiration from market, where the winning streak reached a fourth consecutive day. US futures remained largely stable as oil prices experienced a decline. Japan’s Nikkei 225 increased by 1 per cent, reaching 50,069.33, as investors speculated on a potential interest rate cut by the Federal Reserve during its meeting on December 10. The Japanese government is said to be preparing to issue 11 trillion yen ($70.5 billion) in new bonds to finance its economic package. Tech-related stocks saw an uptick, with SoftBank Group rising by 2.8 per cent and Kioxia Holdings increasing by 5.7 per cent after experiencing a nearly 15 per cent decline the previous day. Enhance your market strategies with The Smart Investor. Receive daily insights on trending stocks and actionable information to inform your investment decisions, delivered straight to your inbox.
In Chinese markets, Hong Kong’s Hang Seng index increased by 0.3 per cent to 25,927.96, while the Shanghai Composite index rose by 0.1 per cent, reaching 3,883.01. Gains were moderated by data indicating that profits for the first ten months of 2025 at major Chinese industrial firms increased by a modest 1.9 percent year-on-year, a decline from the 3.2 percent growth observed in the prior period. In South Korea, the Kospi increased by 0.7 percent to 3,986.54 following the Bank of Korea’s decision to maintain its policy rate at 2.5 percent, a move aimed at bolstering financial stability in the face of a weakened currency and rising concerns regarding housing prices. Australia’s S&P/ASX 200 experienced a modest increase of less than 0.1 per cent, reaching 8,610.50, while Taiwan’s tech-heavy Taiex index saw a gain of 0.2 per cent.
On Wednesday, US stocks experienced a broad increase, with the S&P 500 rising by 0.7 percent to reach 6,812.61. The Dow Jones Industrial Average rose by 0.7 percent, reaching 47,427.12, while the Nasdaq composite increased by 0.8 percent to 23,214.69. Stocks have been rallying as remarks from Federal Reserve officials have instilled greater confidence among traders that the central bank will once again lower interest rates at its upcoming meeting in December. According to data, traders are anticipating a nearly 83 percent likelihood that the Fed will implement a cut next month. Technology companies drove the rally with solid gains, while the majority of sectors in the benchmark S&P 500 index also ended the day on a positive note. On the New York Stock Exchange, gainers surpassed decliners by a margin of more than 2 to 1. The US markets will experience a shortened trading week as a result of the Thanksgiving holiday, closing on Thursday and resuming with reduced hours on Friday. The market’s recent rebound, driven by investor optimism regarding a potential Federal Reserve interest rate cut in December, has significantly mitigated the losses experienced by most major indexes after a period of selling earlier this month. Dell Technologies experienced a 5.8 per cent increase following its announcement of receiving record orders for its artificial intelligence servers. Dell and other technology companies experienced a decline earlier in the month as investors expressed concerns that the valuations of their stocks had become excessively inflated amid the excitement surrounding AI.
Nvidia, the market’s most valuable company, experienced an increase of 1.4 per cent. Microsoft experienced a rise of 1.8 per cent, while Broadcom saw an increase of 3.3 per cent. The market was also buoyed by the performance of financial sector stocks. Robinhood Markets experienced a notable increase of 10.9 percent, marking the largest gain among S&P 500 companies. This surge follows the trading platform’s announcement of plans to launch a futures and derivatives exchange next year, aimed at enhancing its predictions market business. Urban Outfitters, alongside several other retailers, reported earnings this week that surpassed market expectations, resulting in a 13.5 percent increase in its shares. In the bond market, the yield on the 10-year Treasury decreased to 3.99 percent, while the yield on the 2-year Treasury increased to 3.48 percent. In other dealings early Thursday, US benchmark crude declined by 28 cents to $58.37 per barrel. Brent crude, the international benchmark, declined by 33 cents to $61.84 per barrel. The US dollar decreased to 156.14 Japanese yen, down from 156.40. The euro increased to $1.1609, up from $1.1601.
