Asian Stocks Hit Three-Week Lows: Asian stocks retreated to three-week lows on Tuesday, while bonds and the dollar stabilized. Investors moderated expectations for U.S. interest rate cuts, awaiting U.S. jobs data.
The Australian dollar dropped 0.5% after the central bank maintained interest rates, emphasizing future moves depending on data. MSCI’s Asia-Pacific shares index fell 0.9%, with Japan’s Nikkei down 1% to a three-week low, mainly due to falling chipmaking stocks. Gold held above $2,000 after hitting a record high in Asia on Monday.
Treasuries faced pressure as traders adjusted aggressive pricing for U.S. rate cuts. Two-year yields rose 9.1 basis points, remaining steady at 4.64% in Asia. Futures suggest about 125 bps of cuts in 2024. U.S. job openings data awaited at 1530 GMT, with broader hiring figures due Friday.
Also Read: Asian Stocks Rally Amid Global Optimism, Setting the Stage for Best Month in 10
Despite positive inflation and softer October labor data, ANZ analysts expect the Fed to maintain a hawkish policy stance. Hong Kong shares led declines, with the Hang Seng hitting a one-year low, down almost 17% in a year when global stocks rose 15%.
In currency markets, the dollar, which had its sharpest monthly decline in November, edged up. The euro hovered at $1.0837, above its 200-day moving average. The Australian and New Zealand dollars retreated from multi-month highs.
The Aussie dropped 0.5% to $0.6583, testing support at its 200-day moving average. Falling coal and gas prices led to Australia’s current account deficit in Q3. Tokyo’s core inflation slowed in November, keeping the yen steady at 147.22 per dollar.
In commodity trading, Brent crude held steady at $78.31 a barrel. Chicago wheat reached its highest level since late August after a significant private sale to China confirmed by the U.S. Department of Agriculture.
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What are the Asian markets doing right now?
The Nikkei Index is currently trading higher, with a significant increase of 545.97 points. On the other hand, the Hang Seng Index is trading lower, with a slight decrease of 35.87 points. Meanwhile, the S&P BSE SENSEX Index remains unchanged. These are the latest updates from the top Asian markets.
What is the largest stock market in Asia?
The Shanghai Stock Exchange (SSE) is the largest stock exchange in Asia and the third largest in the world. Founded in 1866, it is located in Shanghai, China.