Shares across Asia saw positive movement on Thursday, following a rebound in U.S. stocks after an inflation update fueled optimism for continued support from the Federal Reserve.
In China, stocks advanced as the government outlined economic plans for the upcoming year during a key meeting in Beijing. Among the notable announcements was a decision to expand trial private pension programs nationwide, set to begin on December 15.
Hong Kong’s Hang Seng Index surged 1.7% to 20,501.14, while Shanghai’s Composite Index rose 0.6% to 3,454.52. In Japan, the Nikkei 225 advanced 1.3% to 39,897.13, driven by strong buying in technology stocks. Chip-testing equipment maker Advantest Corp. saw a 4.6% increase, while chip manufacturer Tokyo Electron gained 0.7%.
South Korea’s Kospi gained 0.9%, finishing at 2,464.00, while Australia’s S&P/ASX 200 edged down by 0.2%. Taiwan’s Taiex climbed 0.7%, and India’s Sensex remained relatively stable. Thailand’s SET index picked up 0.3%.
On Wall Street, major indexes continued their upward trajectory on Wednesday, with the S&P 500 climbing 0.8% to 6,084.19, snapping its first two-day losing streak in nearly a month. The Nasdaq Composite surged 1.8%, closing above 20,000 for the first time at 20,034.89. The Dow Jones Industrial Average, however, dipped 0.2% to 44,148.56.
U.S. inflation edged up to 2.7% in November, from 2.6% in October, driven by higher prices for used cars, hotel rooms, and groceries. While inflation remains elevated, it is not expected to hinder the Fed from proceeding with further interest rate cuts at its upcoming meeting. The Fed began reducing rates in September to support a slowing labor market while keeping inflation close to its 2% target.
The Fed’s anticipated rate cuts have been a key driver of the S&P 500’s record-setting performance this year, with 57 all-time highs reached, including one last week.
Tesla saw a notable 5.9% gain, closing at $424.77, surpassing the $420 mark that CEO Elon Musk famously mentioned in a 2018 tweet regarding the company’s potential privatization. Meanwhile, Stitch Fix soared 44.3%, after reporting a smaller-than-expected quarterly loss and offering better-than-expected financial forecasts.
GE Vernova, the energy company spun off from General Electric, gained 5% after announcing a new $6 billion shareholder return plan, which includes quarterly dividends and stock buybacks.
In contrast, supermarket chain Albertsons saw a 1.5% drop after filing a lawsuit against Kroger, claiming the company had failed to meet obligations in their proposed $24.6 billion merger. Regulatory bodies had previously blocked the merger, citing concerns about its potential impact on competition.
Macy’s stock slipped 0.8% after the company reduced its profit forecasts for 2024.
In commodities, U.S. crude oil rose by 5 cents to $70.34 per barrel, while Brent crude increased 11 cents to $73.63 per barrel.
On the currency front, the U.S. dollar weakened slightly to 152.25 Japanese yen, down from 152.46 yen, while the euro edged up to $1.0507 from $1.0496.
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