Asian stocks mixed despite growing expectations of Fed rate cut

Asian stocks struggled to maintain gains on December 4, even as the latest batch of US data reinforced expectations the Federal Reserve will cut interest rates for a third consecutive time at its meeting next week.

A trader works at a securities company in Tokyo, Japan. Photo: Kyodo/TTXVN

At the end of the trading session, regional markets recorded a clear differentiation. In Japan, the Nikkei 225 index rose sharply by 2.3% to 51,028.42 points, supported by a successful government bond auction that helped ease concerns about rising interest rates. The Hang Seng index in Hong Kong (China) also increased by 0.7% to 25,935.90 points. The markets in Sydney, Mumbai, Taipei and Manila also increased.

In contrast, the Shanghai Composite Index in Shanghai edged down 0.1% to 3,875.79 points. In South Korea, the Kospi Index fell 0.19% to 4,028.51 points, ending a two-day winning streak as concerns about the high valuations of AI-related stocks weighed on major chipmakers. Markets in Singapore, Wellington, Bangkok and Jakarta also closed in the red.

The main driver of market sentiment remains the outlook for US interest rates. Bets on a rate cut at the Fed’s next meeting have jumped to around 90% in the past two weeks, after many Fed officials supported the move to support the job market.

That possibility was reinforced after data from ADP showed the US labor market lost 32,000 jobs in November, in sharp contrast to forecasts for a gain of 10,000. ADP chief economist Nela Richardson said recent hiring activity has been choppy, as employers face cautious consumers and an uncertain macro environment.

Elias Haddad from financial management firm Brown Brothers Harriman & Co also said that current data supports the Fed to cut interest rates further, as labor demand in the US weakens, consumer spending shows signs of cracking and the risk of rising inflation is fading.

In the domestic market, at the end of the trading session, the VN-Index increased by 5.47 points (0.32%) to 1,737.24 points. The HNX-Index increased by 2.64 points (1.02%) to 262.31 points.

Source: https://baotintuc.vn/kinh-te/chung-khoan-chau-a-phan-hoa-du-ky-vong-fed-ha-lai-suat-gia-tang-20251204155623519.htm