(RTTNews) – Asian shares rose on Wednesday, despite several Federal Reserve officials trying to temper expectations of upcoming interest rate cuts.
With inflation declining, investors still expect a total of almost 150 basis points of rate cuts in 2024. The chance of a cut as early as March is almost 70 percent.
Markets are looking to November’s core US personal consumption expenditure report, due Friday, for further direction.
The dollar held steady in Asian trading, while oil held on to gains made over the past two days on fears of further disruptions to the oil supply chain due to attacks by Iran-backed Houthi militants in the Red Sea.
Chinese stocks fell sharply after the country’s central bank continued to maintain benchmark interest rates despite concerns about deflation and slower economic growth.
China’s Shanghai Composite index fell 1.03 percent to 2,902.11, while Hong Kong’s Hang Seng index rose 0.66 percent to 16,613.81.
Japanese markets recovered to close at a five-month high in the wake of the Bank of Japan’s accommodative monetary policy.
The Nikkei average rose 1.37 percent to 33,675.94, marking its highest close since July 3. The broader Topix index closed 0.67 percent higher at 2,349.38.
Uniqlo-brand clothing store operator Fast Retailing and silicon wafer maker Shin-Etsu Chemical both rose about 4 percent. Printing company Toppan Holdings rose 8.5 percent thanks to a brokerage upgrade.
Investors ignored data showing Japanese exports fell for the first time in three months in November.
Seoul stocks hit a three-month high for the fifth straight session on Fed pivot bets. The Kospi average rose 1.78 percent to 2,614.30, the highest level since September 15.
Samsung Electronics, SK Hynix, LG Energy Solution and Samsung SDI all rose about 2 percent.
Top carmaker Hyundai Motor rose 3.6 percent after announcing new executive appointments to strengthen the Group’s leadership in future mobility solutions.
HMM, the country’s No. 1 container shipper, rose 20 percent after announcing its planned sale to Harim Group.
Australian markets rose markedly to hit a 10-month closing high, led by banks, energy stocks and gold miners.
The benchmark S&P ASX 200 gained 0.65 percent to close at 7,537.90, while the broader All Ordinaries index finished 0.62 percent higher at 7,764.
Across the Tasman index, New Zealand’s benchmark S&P/NZX 50 index fell 0.32 per cent to 11,579.80.
U.S. stocks closed higher overnight despite warnings from Fed officials seeking to curb expectations for aggressive rate cuts next year.
Investors ignored mixed figures showing the number of new homes rose 14.8 percent in November, while building permits fell 2.5 percent.
The Dow Jones and the tech-heavy Nasdaq Composite both rose about 0.7 percent to extend gains for a ninth straight session, while the S&P 500 rose 0.6 percent.
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