Asian stocks mixed on expectations of Fed rate cut

Asian stock markets were mixed on November 12 as investors hoped the end of the record-long US government shutdown would help improve sentiment and consumer demand.

An electronic screen displays the Nikkei 225 index in Tokyo, Japan. Photo: Kyodo/VNA

Meanwhile, new jobs data reinforced the possibility that the US Federal Reserve (Fed) will continue to cut interest rates for the third consecutive time.

However, developments on Wall Street in the trading session last night showed that concerns still exist about the high valuations of technology stocks after a strong rally thanks to the artificial intelligence (AI) wave this year.

At the end of this session, in Japan, the Nikkei 225 index increased by 220.38 points (equivalent to 0.43%), closing at 51,063.31 points, thanks to the cash flow from foreign investors pouring into businesses with positive business results such as TDK and Fujikura, helping the market recover after the adjustment period at the beginning of the month. The weak yen also supported the group of export stocks, when this currency at times fell to 154 yen/USD - the lowest since February 2025.

In South Korea, the KOSPI index rose 44 points (1.07%) to 4,150.39, marking its third consecutive gain as concerns about a US government shutdown gradually cooled. However, the Korean won fell against the USD.

The Chinese market recorded mixed developments when the Shanghai Composite index slightly decreased 0.07% to 4,000.14 points, while Hong Kong's Hang Seng index increased 0.9% to 26,937.89 points.

Markets in Mumbai, Singapore, Taipei, Wellington and Manila all rose, while Sydney and Bangkok edged lower.

After being passed by the Senate, the spending bill to restore the federal government's operations is expected to be considered by the US House of Representatives and sent to President Donald Trump for signing, paving the way for agencies to be able to resume operations as early as November 14.

Investors welcomed the deal, which would end a government shutdown that began on October 1, leaving about 1 million federal workers without pay, millions of low-income Americans at risk of losing food stamps, and thousands of flights canceled.

The shutdown has also delayed a slew of key economic data, leaving the Fed and investors with little basis for assessing policy. But while some reports may be released soon, many others may take longer, experts say.

Sentiment was further bolstered after the ADP employment report showed that US private businesses cut an average of 11,250 jobs per week in the four weeks ended October 25. The figure, along with a series of recent reports reflecting a weakening US labor market, increased pressure on the Fed to act, even as the bank continues to try to contain high inflation.

Another report from Challenger, Gray & Christmas also showed that the number of workers laid off in the US in October increased to a 22-year high, further strengthening expectations of a Fed rate cut at its December meeting.

Investors were also hit by news that Japan's SoftBank Group sold its entire $5.8 billion stake in chipmaker Nvidia without giving a reason. Nvidia shares fell 3%, while SoftBank shares briefly lost 10% in Tokyo before paring losses to 3.5% by the end of the session.

In the domestic market on the afternoon of November 12, the VN-Index increased by 38.25 points, or 2.4%, to 1,631.86 points. The HNX-Index increased by 3.71 points, or 1.42%, to 264.79 points.

Source: https://baotintuc.vn/thi-truong-tien-te/chung-khoan-chau-a-bien-dong-trai-chieu-truoc-ky-vong-fed-ha-lai-suat-20251112155456607.htm