Asian stocks divided on possibility of Fed rate cut

Asian stock markets continued to diverge on December 2, as weak US economic data reinforced the possibility of the US Federal Reserve cutting interest rates and concerns about rising Japanese bond yields eased.

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

Closing this session, the Nikkei 225 index in Tokyo was flat at 49,303.45 points, after falling sharply in the previous session due to the impact of comments by Bank of Japan (BoJ) Governor Kazuo Ueda hinting at the possibility of an interest rate hike this month.

The remarks sent the yen soaring and sent shockwaves through the stock market as the yield on Japan's two-year government bonds breached the 1% threshold, reaching its highest level since the 2008 global financial crisis. However, the yen eased slightly in the session, easing pressure on the stock market.

Meanwhile, the Shanghai Composite Index in Shanghai fell 0.4% to 3,897.71 points. Red was also recorded in the markets of Manila, Mumbai and Bangkok.

In contrast, in Hong Kong (China), the Hang Seng index added 0.2% to 26,095.05 points. The markets in Sydney, Seoul, Singapore, and Jakarta also increased.

Expectations that the Fed will cut interest rates have given markets a boost in recent weeks, helping stocks make up for earlier losses in November 2025 caused by concerns about a potential tech bubble.

This expectation is further reinforced by data showing that the US economy - especially the labor market - continues to cool while inflation appears to have stabilized for now.

In Vietnam, at the end of this session, the VN-Index increased by 15.39 points, or 0.9%, to 1,717.06 points, while the HNX-Index increased by 0.96 points, or 0.37%, to 258.87 points.

Source: https://baotintuc.vn/kinh-te/chung-khoan-chau-a-phan-hoa-truoc-kha-nang-fed-ha-lai-suat-20251202161324596.htm