Awaiting US economic data, Asian stocks fell across the board.

Asian markets extended their losses, following Wall Street's lead, on December 16th, as investors awaited key US employment and inflation data. Furthermore, market sentiment remained subdued due to concerns about a potential tech bubble.

A screen displaying stock market indices in Tokyo, Japan. Photo: Kyodo/VNA

At the close of trading, the Nikkei 225 index in Tokyo fell 1.6% to 49,383.29 points. In China, the Shanghai Composite index in Shanghai dropped 1.1% to 3,824.81 points, while the Hang Seng index in Hong Kong declined 1.6% to 25,227.95 points.

The Seoul market fell by more than 2%, while Taipei dropped by more than 1%. Markets in Sydney, Singapore, Manila, Mumbai, Bangkok, and Jakarta also declined.

After a period of strong growth driven by technology stocks this year, traders appear to be closing out 2025 on a somber note, amid skepticism about the massive investments in artificial intelligence (AI) and signals that the Federal Reserve will pause interest rate cuts.

All attention is currently focused on the US November jobs report and the previously delayed October figures, scheduled for release on December 16th. Following that, the consumer price index (CPI) data will be released on December 18th. These figures will be scrutinized for clues about the Fed's interest rate plans, as officials debate whether to continue lowering rates in January.

Comments from policymakers reveal a split within the Fed, as recent rate cuts were driven by concerns about a weakening labor market, but now worries have shifted to persistently high inflation.

Fed Governor Stephen Miran warned that interest rates are still too high. Meanwhile, New York Fed President John Williams argued that rates are at the appropriate level, while Boston Fed President Susan Collins stated that the upcoming decision will be a "tough decision."

Matt Weller, head of market research at City Index, said traders are currently betting only on a 25% chance of another interest rate cut in January 2026. With the likelihood of interest rate cuts appearing so limited, equity traders have shifted to short positions.

Concerns about the technology sector also weighed on market sentiment, with recent warnings about an AI-fueled bubble further exacerbated by disappointing earnings reports last week from Oracle and Broadcom.

Speculation that hundreds of billions of dollars invested in AI will take a long time to yield returns, if any, also acts as a drag on the market.

Contrary to the downward trend in regional markets, in Vietnam, the VN-Index closed the session up 33.17 points, or 2.02%, at 1,679.18 points, while the HNX-Index rose 5.71 points, or 2.29%, to 255.08 points.

Source: https://baotintuc.vn/kinh-te/cho-doi-cac-so-lieu-kinh-te-my-chung-khoan-chau-a-dong-loat-giam-diem-20251216154151092.htm