Cautious sentiment still dominates Asian stocks ahead of Fed meeting

Asian stock markets rose and fell in a mixed session on the morning of December 3, as investors cautiously awaited a series of US economic data ahead of the US Federal Reserve (Fed) meeting next week.

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

Earlier, at the end of the session on December 2, all three major indexes on Wall Street remained green and many Asian markets also performed similarly. At the break, the Nikkei 225 index increased 1.1% to 49,862.94 points. The Seoul market also recorded an increase of more than 1%, while the markets in Sydney, Singapore, Wellington, Taipei and Jakarta also increased.

In the opposite direction, in China, the Hang Seng index in Hong Kong fell 1% to 25,843.01 points, and the Shanghai Composite index lost 0.1% to 3,894.22 points.

The focus is now on the ADP private sector jobs report due later in the day on December 3, and the personal consumption expenditures (PCE) index – the Fed’s preferred inflation gauge – on December 5. Markets are pricing in a roughly 90% chance of a rate cut on December 10, with three more cuts expected next year.

Market optimism about the prospect of lower interest rates was also reinforced by information that Kevin Hassett, President Donald Trump's top economic adviser and a supporter of further interest rate cuts, is a strong candidate to take over as Fed Chairman when Jerome Powell's term ends next May.

However, while many Fed policymakers have supported cutting interest rates, observers say there appear to be differences within the policy board over whether to prioritize addressing the weakening labor market or persistently high inflation.

The upcoming PCE figure is the last major inflation measure before the Fed's December policy meeting, said Fabien Yip, a market analyst at IG. Any deviation could alter expectations for the Fed's policy stance, he said.

In Vietnam, at the break, the VN-Index increased 8.32 points, or 0.48%, to 1,725.38 points, while the HNX-Index decreased 0.11 points, or 0.04%, to 258.76 points.

Source: https://baotintuc.vn/thi-truong-tien-te/tam-ly-than-trong-van-chi-phoi-chung-khoan-chau-a-truoc-them-cuoc-hop-cua-fed-20251203115355712.htm