Asian Shares Surge to Two-Month Highs
Singapore (Reuters) – Asian shares reached a two-month peak on Tuesday, buoyed by a robust Wall Street rally and a weakening dollar, with expectations that the U.S. Federal Reserve has concluded interest rate hikes.
1. MSCI’s Index Hits Highest Since September 18
MSCI’s broadest index of Asia-Pacific shares outside Japan rose by 0.91% to 509.82, touching 510.42, marking the highest level since September 18. The index is on track for the most substantial monthly gain since January, with a 7% increase for the month.
2. Japan’s Nikkei Eases Despite 28% Yearly Increase
Despite reaching heights not seen since 1990, Japan’s Nikkei eased by 0.15%. Nonetheless, it remains the top-performing stock market in Asia with a remarkable 28% increase this year.
3. China’s CSI300 and Hong Kong Gain Amid Easing Tensions
China’s blue-chip CSI300 Index rose by 0.66%, and Hong Kong’s market gained 1.25% as tensions between the U.S. and China eased.
4. Wall Street Rally Boosts Major Averages
On Monday, Wall Street’s major stock averages rose, with Nasdaq leading with a 1% rally. Investors are closely watching earnings from Nvidia and Federal Reserve meeting minutes to gauge future rate directions.
5. November’s Market Rebound Driven by Inflation Data
November’s market rebound is fueled by data suggesting a possible easing of U.S. inflation. Speculation arises that the Fed might cease tightening and consider rate cuts in the coming year.
6. Trading Caution Ahead of U.S. Thanksgiving Holiday
With the U.S. Thanksgiving holiday approaching, trading may be subdued, marked by caution due to the potential impact of economic data on monetary policy.
7. Treasury Yields Lower on Solid Bond Sale
Treasury yields lowered after a solid $16 billion 20-year Treasury bond sale, indicating market expectations of decelerating inflation and potential Fed rate cuts next year.
8. Dollar Index Declines to 103.37
The dollar, measured by the Dollar Index, declined by 0.058% at 103.37. Simultaneously, the Japanese yen strengthened to 148.03 per dollar.
9. Australian Dollar Hits Three-Month High
The Australian dollar, often considered a risk appetite gauge, touched a three-month high of $0.65775.
10. Oil Prices Ease Despite OPEC Cuts
Despite OPEC supply cuts, oil prices eased as concerns over a slowing global economy took precedence. Crude oil prices fell 0.05% to $77.79 per barrel, and Brent crude was at $82.23, down 0.11% on the day.
