Asian stock markets lose momentum, investors cautious ahead of Fed decision

Asian stock markets failed to maintain their early gains on the morning of December 4. Meanwhile, new economic data from the US continued to reinforce expectations that the US Federal Reserve (Fed) will cut interest rates for the third time in a row next week.

A screen displaying stock indexes in Tokyo, Japan. Photo: Kyodo/VNA

In mid-session trading, the Nikkei 225 index in Tokyo rose 1.5% to 50,596.24 points. The Sydney and Manila stock markets also rose. However, the Hang Seng index in Hong Kong (China) fell 0.3% to 25,687.40 points. The Shanghai Composite index on the Shanghai exchange also fell 0.4% to 3,846.39 points. The markets in Seoul, Singapore, Wellington and Taipei (Taiwan, China) all fell.

Expert Elias Haddad of Brown Brothers Harriman & Co said that current economic data is leaning towards the possibility of the Fed continuing to cut interest rates, in the context of weakening labor demand in the US, consumer spending showing signs of slowing down and inflationary pressure gradually decreasing.

The Fed remains the dominant driver of market volatility, Bank of America economists warn. Investors expect the Fed to cut interest rates next year, but the timing remains uncertain. They stress that even with inflation cooling and the policy easing trend intact, any delay in cutting interest rates could cause market volatility.

In Vietnam, at 11:27 a.m., the VN-Index decreased by 2.82 points (0.16%) to 1,728.95 points, the HNX-Index increased by 2.33 (0.9%) to 262.00 points.

Source: https://baotintuc.vn/thi-truong-tien-te/thi-truong-chung-khoan-chau-a-mat-da-nha-dau-tu-than-trong-truoc-quyet-dinh-cua-fed-20251204122505686.htm