After Wall Street's Record, Asian Stocks Slump, Why?
Asian stocks opened lower on Tuesday, reversing Wall Street's rally fueled by Amazon's massive $38 billion deal with OpenAI. Stock markets in South Korea and Japan weakened after a long holiday, while Australian stocks fell ahead of central bank interest rate decisions that are expected to remain unchanged. Although the S&P 500 posted a small gain on Monday, more than 300 of its members declined.
In other markets, the US dollar strengthened slightly, while gold fell 0.2%. The Japanese yen also weakened. Major tech deals from Amazon, Microsoft, and Alphabet have given Wall Street renewed momentum after seven straight months of global stock gains. However, concerns about high stock valuations and uncertainty about the Fed's monetary policy are looming over the market.
Analysts warn that despite the significant gains in global stock markets this year, there is still potential for further declines, especially if the Federal Reserve maintains a tight policy stance. Several Fed officials have also signaled that they have not yet decided whether to continue cutting interest rates at their upcoming December meeting.
Meanwhile, the latest economic data shows that US factory activity continued to decline for the eighth consecutive month, although inflationary pressures have begun to ease. Market participants are now shifting their focus to economic reports and comments from central bank officials, which could provide clearer clues regarding the future direction of monetary policy. (asd)
Source: Newsmaker.id
