Asian Markets Deliver Mixed Performance in Quiet Session
Asian shares presented a fragmented picture on Friday, with trading volumes subdued by the Thanksgiving holiday closure on Wall Street. The technology sector, which had recently enjoyed a rebound, lost momentum and slipped, tempering overall market sentiment.
Federal Reserve Policy and AI Drive Market Sentiment
The recent fluctuations in world markets continue to be heavily influenced by two key factors: developments in artificial intelligence and the persistent focus on the future of U.S. monetary policy. Comments from Federal Reserve officials have recently revived investor optimism that the central bank might implement an interest rate cut at its upcoming meeting next month.
Stephen Innes of SPI Asset Management captured the prevailing mood in a commentary, stating, "Everyone is sprinting towards the same conclusion: the Fed will deliver holiday cheer." This anticipation is providing a crucial underpinning for market movements.
Regional Market Performance and Key Data
A detailed look across the region revealed varied outcomes. Japan's Nikkei 225 remained virtually unchanged, closing at 50,172.60. Stocks linked to artificial intelligence, such as Kioxia Holdings, Fujikura, and Lasertec, were among the notable decliners.
Supporting expectations for a gradual shift in monetary policy, government data showed that Tokyo's core inflation held steady at 2.8% year-on-year in November, matching the October figure and remaining above the Bank of Japan's 2% target. Despite this, a rate hike is not anticipated at the BOJ's December meeting.
South Korea's Kospi experienced a more pronounced drop, falling 1.4% to 3,930.95. This decline was fuelled by disappointing industrial data, which showed production fell by 4% month-on-month in October, a steeper decline than the 1.1% drop in September. A significant 26.5% plunge in semiconductor production weighed heavily on tech giants like LG Energy Solutions, SK Hynix, and Samsung Electronics.
In Chinese markets, the Hong Kong Hang Seng index dipped 0.2%, while the Shanghai Composite managed a slight 0.2% gain. Australia's S&P/ASX 200 edged down 0.1%, whereas Taiwan's Taiex rose 0.9% and India's BSE Sensex was up 0.1%.
Commodities, Currency, and Pre-Holiday Trading
In commodity markets, U.S. benchmark crude oil added 43 cents to reach $59.08 per barrel. The international standard, Brent crude, also saw an increase, rising 21 cents to $63.08 per barrel.
In currency trading, the U.S. dollar strengthened slightly against the Japanese yen, while the euro weakened against the dollar. This activity follows a broadly positive session on Wall Street on Wednesday, where the S&P 500, Dow, and Nasdaq composite all posted gains before the U.S. trading holiday.
