Global Markets:
- Asian Stock Markets : Nikkei down 1.33%, Shanghai Composite down 1.43%, Hang Seng down 2.24% ASX down 0.89%
- Commodities : Gold at $2052.45 (0.53%), Silver at $24.89 (-0.06%), Brent Oil at $77.61 (-0.06%), WTI Oil at $73.09 (-0.03%)
- Rates : US 10-year yield at 4.235, UK 10-year yield at 4.216, Germany 10-year yield at 2.342
News & Data:
- (USD) Factory Orders m/m -3.6% vs -2.7% expected
Markets Update:
Investors in the Asia-Pacific region faced a downturn as they processed various economic updates. South Korea’s inflation rate for November landed at 3.3%, below the 3.7% forecasted by Reuters. Tokyo experienced a drop in inflation to 2.6% from the prior month’s 3.3%, often seen as a precursor to national trends. China’s service Purchasing Managers’ Index (PMI) hit a three-month high, per Caixin and S&P Global, alongside anticipated private PMI readings from Hong Kong and India.
Market losses spread across Asia, with Hong Kong’s Hang Seng index leading the plunge by 1.67%, while China’s CSI 300 index hit a four-year low with a 0.80% drop. Japan’s Nikkei 225 declined by 1.18%, and Australia’s S&P/ASX 200 closed 0.89% lower after the Reserve Bank of Australia held its policy rate at 4.35%, in line with expectations. South Korea’s Kospi fell by 0.44%, and the small-cap Kosdaq lost 1.29%.
In the U.S., all three major indexes declined following five consecutive weeks of gains. The Dow Jones fell by 0.11%, the S&P 500 dropped by 0.54%, and the Nasdaq Composite slid by 0.84% as investors divested from Big Tech shares, pivotal in this year’s market surge. Despite sluggish stocks, bitcoin soared past $41,000, hitting a 19-month high, and gold reached its highest nominal intraday level ever.
The market slump in Asia was prompted by South Korea’s lower-than-expected inflation and Tokyo’s dwindling inflation rate, considered a national trend indicator. China’s positive PMI data contrasted with market losses in Hong Kong and mainland China, setting a downward trend across the region. Similarly, in the U.S., major indexes saw declines as investors shifted from Big Tech stocks. Yet, amidst this, both bitcoin and gold experienced significant surges, showcasing alternative investment interests.
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