Asia-Pacific markets were mostly higher on Wednesday, buoyed by Wall Street’s strong performance after the release of tame inflation data in the U.S., which fueled optimism about a potential interest rate cut by the Federal Reserve next week.
In Australia, fresh jobs data showed the unemployment rate fell to an 8-month low of 3.9% in November, beating expectations of an increase to 4.2%. This marked a decline from 4.1% the previous month, signaling resilience in the labor market.
Market Performances Across Asia
- Japan: The Nikkei 225 rose by 1.3%, while the broader Topix gained 1%, driven by positive sentiment from U.S. markets.
- South Korea: The Kospi advanced 0.4%, while the Kosdaq remained flat as investors evaluated ongoing political developments.
- China: The CSI 300 index climbed 0.8%, reflecting investor optimism.
- Hong Kong: The Hang Seng surged 1.7% ahead of the release of industrial production data for Q3, expected later in the day.
- Australia: Despite strong labor market data, the S&P/ASX 200 dipped 0.25%, reflecting mixed investor sentiment.
Wall Street Performance at a Glance
U.S. markets posted significant gains following the release of November’s inflation report, which met expectations and bolstered hopes for a more accommodative monetary policy stance.
- The Nasdaq Composite surged 1.77% to close at a record 20,034.89, setting both an all-time high and a closing record.
- The S&P 500 added 0.82%, ending at 6,084.19.
- The Dow Jones Industrial Average, however, fell 0.22% to 44,148.56, weighed down by select underperforming stocks.
Tech Sector Drives Gains
The rally was led by tech heavyweights:
- Nvidia advanced over 3%, continuing its strong performance.
- Tesla jumped nearly 6%, adding to the broader optimism in major growth stocks.
Key Takeaways:
- Asia-Pacific markets responded positively to Wall Street gains and robust Australian labor market data.
- U.S. inflation data boosted expectations for a Federal Reserve interest rate cut next week.
- Tech stocks were the primary drivers of Wall Street’s rally, with the Nasdaq reaching record highs.
Investors now await further updates, including Hong Kong’s industrial production data and the Federal Reserve’s upcoming policy decision, which will set the tone for markets heading into the end of the year.
