Global Markets:
- Asian Stock Markets : Nikkei down 0.63%, Shanghai Composite up 0.29%, Hang Seng down 1.05% ASX up 0.38%
- Commodities : Gold at $4,487.35 (-0.19%), Silver at $80.507 (-0.65%), Brent Oil at $60.07 (-1.02%), WTI Oil at $56.32 (-1.42%)
- Rates : US 10-year yield at 4.162, UK 10-year yield at 4.4820, Germany 10-year yield at 2.8466
News & Data:
- (USD) Final Services PMI 52.5 to 52.9 expected
Markets Update:
Asian stock markets traded mixed on Wednesday, taking broadly positive cues from Wall Street overnight but remaining cautious amid rising geopolitical tensions between the U.S. and Venezuela, as well as escalating strains between China and Japan over Taiwan. Investors are also awaiting several key U.S. economic reports due later this week. Asian markets had closed mostly higher on Tuesday.
Attention is focused on Friday’s U.S. monthly jobs report, which could shape expectations for interest rates ahead of the Federal Reserve’s policy meeting later this month. While the Fed is widely expected to keep rates unchanged at its January meeting, markets continue to price in at least one quarter-point rate cut in the coming months.
Australian shares rebounded strongly, with the S&P/ASX 200 climbing above 8,700, supported by gains in gold miners and technology stocks, despite weakness in energy and financial shares. Major miners BHP Group and Rio Tinto advanced, while oil stocks declined. Technology shares were mostly higher, and gold miners posted solid gains. Several individual stocks surged on contract wins, patent approvals, and upbeat results.
In economic data, Australia’s annual inflation eased to 3.4 percent in November, its lowest level since August, while building permits rose sharply, beating expectations. The Australian dollar traded around $0.673.
Japan’s stock market declined, reversing gains from earlier sessions, led by losses in exporters and technology stocks. Economic data showed Japan’s services sector continued to expand in December, though at a slower pace.
Elsewhere in Asia, markets were mixed, while Wall Street and major European indices closed higher overnight. Crude oil prices fell as investors assessed the impact of recent U.S. military action in Venezuela.
Upcoming Events:
- 03:00 PM GMT – USD ISM Services PMI
- 03:00 PM GMT – USD JOLTS Job Openings
