Speculation about the Fed's interest rates is dominating Asian stocks.

Asian stock markets showed mixed performance on December 17th, as the latest US jobs data failed to bolster expectations of another interest rate cut. Meanwhile, crude oil prices surged internationally following President Donald Trump's latest tough stance on Venezuela.

Stock market index board in Tokyo, Japan. Photo: Kyodo/VNA

In Tokyo, Japan, the Nikkei 225 index rose 0.3% to 49,512.28 points. In China, Hong Kong's Hang Seng index gained 0.7% to 25,421.78 points, while the Shanghai Composite index rose 1.2% to 3,870.28 points. Stocks in Seoul, Manila, and Jakarta also saw gains. Conversely, stocks in Sydney, Singapore, Taipei, Mumbai, Wellington, and Bangkok declined.

Non- farm payroll data released by the US on December 16 showed that the unemployment rate in November 2025 rose to 4.6%, the highest level in four years, reinforcing the view that the labor market is slowing down. However, analysts believe these figures are not enough to change the stance of the US Federal Reserve (Fed).

According to Bloomberg, the market is currently betting on a 20% chance that the Fed will cut interest rates in January 2026. Fed officials have also signaled that lowering borrowing costs is unlikely at their fourth consecutive meeting. Sentiment on the stock exchanges has been subdued recently, coupled with concerns about the valuation of technology stocks and the actual effectiveness of massive spending on artificial intelligence (AI).

Taylor Nugent, senior economist at the National Bank of Australia (NAB), noted that the slight increase in the unemployment rate addresses the Fed's concerns about the labor market, but it's not enough to prompt policy easing in the short term. A further surge next month would be needed to significantly alter the likelihood of an interest rate cut in January 2026.

In the currency market, the Japanese yen continued to strengthen against the US dollar ahead of expectations that the Bank of Japan (BoJ) will raise interest rates to their highest level in 30 years on December 19.

Notably, the Indian rupee surged 1% after the central bank intervened in the market. The currency recovered to 89.9662 rupees per US dollar, after earlier hitting a record low of over 91 rupees/USD due to concerns about the current account deficit and capital outflows.

In Vietnam, the VN-Index fell 5.52 points (0.33%) to 1,673.66 points, and the HNX-Index fell 1.96 points (0.77%) to 253.12 points.

Source: https://baotintuc.vn/thi-truong-tien-te/don-doan-ve-lai-suat-cua-fed-chi-phoi-chung-khoan-chau-a-20251217161947862.htm