Hong Kong – Asian markets ended the week on a mixed note after a strong run in global equities, driven by growing expectations that the Federal Reserve will cut interest rates again next month.
Traders were taking a pause after the Thanksgiving holiday in New York, reflecting on a healthy rebound following November’s market dip, which was triggered by worries over an AI investment bubble.
Much of the focus remains on the Fed’s next moves. Several top Fed officials have signaled support for a third straight rate cut, citing concerns over a weakening labor market outweighing still-high inflation. Markets now await key economic data in the coming week, including private hiring, services activity, and personal consumption expenditure—the Fed’s preferred inflation gauge.
Some data releases have been delayed due to the U.S. government shutdown. This pushes the release of non-farm payrolls to mid-December, after the Fed’s policy meeting. Analysts, including Michael Hewson of Market Insights, say the November ADP private payroll report will now get extra attention, although holiday hiring may distort the figures.
Markets currently see about an 85% chance of a rate cut next month, with expectations for three more cuts in 2026.
Asian Market Moves
With little movement from New York, Asian markets showed a mixed picture:
- Hong Kong Hang Seng: down 0.3% at 25,868.06
- Shanghai Composite: down 0.1% at 3,872.43
- Tokyo Nikkei 225: flat at 50,144.76
- Seoul and Jakarta: down
- Sydney, Singapore, Taipei, Wellington: slightly up
The yen fluctuated against the dollar after Tokyo inflation came in slightly above expectations, reigniting debate over potential future rate hikes. Despite some pullback from earlier levels near 158 per dollar, the yen remains under pressure due to concerns about Japan’s fiscal outlook and borrowing plans.
Other Key Figures
- Euro/dollar: down at $1.1586 from $1.1602
- Pound/dollar: down at $1.3230 from $1.3252
- Dollar/yen: up at 156.44 from 156.30
- Euro/pound: up at 87.58 pence from 87.56
- WTI crude: up 0.6% at $59.00/bbl
- Brent crude: flat at $63.34/bbl
- London FTSE 100: flat at 9,693.93
- New York Dow: closed for Thanksgiving
Overall, markets are taking a breather, with investors closely watching economic signals for clues about the Fed’s next moves.
