Asian markets have extended their recovery following the withdrawal of tariff threats by US President Donald Trump over Greenland. The move has eased tensions, although uncertainty surrounding US policy continues to impact the dollar and drive up precious metals. Investors are now focusing on the upcoming Federal Reserve meeting, scheduled for next week, where interest rates are expected to be held steady.
The US economy grew slightly more than initially estimated in the third quarter, driven by an increase in exports and investment. Jobless numbers have also dipped, while inflation has settled slightly lower. Despite this, the dollar has struggled against most currencies, except for the yen, which it rose against after the Bank of Japan decided to hold off on hiking interest rates.
The Federal Reserve meeting comes amid a deepening row between President Trump and Fed Chairman Jerome Powell, who has faced criticism for not cutting borrowing costs quickly enough. The president has also hinted at replacing Powell when his term ends in May, stating that he has a potential candidate in mind.
In company news, Japanese gaming giant Nintendo saw its stock jump 6.9% after its Switch 2 console led the US hardware market in unit and dollar sales. The company’s stock ended the day 4.5% higher.
Next week’s US earnings calendar is packed with results from major corporations, including Apple, Microsoft, and Tesla. The Federal Reserve’s monetary policy decision will also be closely watched. Gold and silver prices have rallied to fresh records, with gold reaching $4,967 an ounce and silver touching $99.
Key market figures include the Tokyo Nikkei 225, which rose 0.3% to 53,846.87, and the Hong Kong Hang Seng Index, which gained 0.5% to 26,749.51. The London FTSE 100 was flat at 10,152.45, while the euro/dollar exchange rate fell to $1.1739. The dollar/yen exchange rate rose to 158.50 yen, and West Texas Intermediate crude oil prices increased 0.5% to $59.63 per barrel.
The upcoming Federal Reserve meeting and US earnings reports are expected to drive market sentiment in the coming week, as investors continue to navigate the complexities of US policy and its impact on global markets.
