Asian markets continued their upward trend on Thursday, extending the global rally that began earlier in the week. The surge is largely driven by expectations of a third consecutive U.S. interest‑rate cut next month. Comments from Federal Reserve officials and a string of weak jobs reports have reinforced expectations of another cut at the December policy meeting. Markets are now pricing an 80 % chance of a rate cut on December 10 and three more cuts next year, a significant shift from the previously expected three reductions.
Recent concerns over inflated valuations have taken a backseat, and confidence is flowing through trading floors, boosting riskier assets, including bitcoin. Bitcoin, which had recently plunged to a seven‑month low, rebounded above $90,000 as risk appetite returned, though it remains below its record high. Traders were unfazed by data showing a drop in jobless claims, which contradicted forecasts of a small rise.
The Federal Reserve’s “beige book” highlighted a growing divergence in consumption: lower‑income households are pulling back on spending, while higher‑end retail remains resilient. The prospect of lower rates has overshadowed worries about elevated inflation, with the Fed focusing on the jobs market. Analysts note that a wider range of firms is driving the latest rally, with smaller‑cap companies benefiting from lower borrowing costs.
Wall Street’s main indexes rose for the fourth straight day on Wednesday, and Asian markets followed suit after Thursday’s Thanksgiving holiday. Tokyo, Hong Kong, Shanghai and Seoul all advanced, continuing the global gains that followed a dip earlier in the month caused by concerns over a tech‑led surge and massive AI‑sector investments.
In corporate news, Tokyo‑listed beer giant Asahi fell after announcing a delay in its financial results due to a cyberattack. South Korea’s largest crypto exchange, Upbit, is set to be acquired by tech giant Naver Financial in a deal valued at over $13 billion, pending board approval. Upbit is the world’s fourth‑largest crypto exchange by trading volume.
Key figures at 02:15 GMT included the Nikkei 225 up 1.3 % at 50,203.38, the Hang Seng Index up 0.1 % at 25,944.71, and the Shanghai Composite up 0.4 % at 3,879.12. The euro and pound rose against the dollar, while West Texas Intermediate crude oil fell 0.6 % to $58.33 per barrel.
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