Asian Markets Uncertain, Powell Dampens Rate Cut Euphoria
Asian stocks were mixed on Thursday after Fed Chairman Jerome Powell emphasized that a December interest rate cut was not a certainty. The region's benchmark indexes were virtually unchanged, while US stock futures fluctuated between gains and losses. The 10-year US Treasury yield hovered around 4.07%, adding pressure on riskier assets. Gold briefly edged up after four days of declines.
On the issuer side, tech giant earnings results were mixed: Meta fell 7.7% in after-hours trading, Alphabet jumped 6%, and Microsoft weakened. In Asia, Samsung Electronics gained after earnings beat estimates. South Korean stocks also rose, helped by the latest trade deal with the US.
After the Fed cut interest rates for the second consecutive time and confirmed a halt to balance sheet contraction on December 1, market participants are now reducing bets on further easing. The focus next turns to the Bank of Japan and the European Central Bank, which will signal their policy direction today. The BOJ is widely expected to hold rates at 0.5%, but a more hawkish tone could boost expectations of a hike.
On the geopolitical front, markets are awaiting the Trump-Xi meeting in South Korea for a possible trade détente that could see some tariffs and export restrictions eased. Any signs of progress on the trade front, combined with central bank policy direction, will be key determinants of the future direction of Asian stocks. (asd)
Source: Newsmaker.id
