Global Stock Prices: Asian Momentum, U.S. Optimism, and Market Expectations

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Global Stock Prices: Asian Momentum, U.S. Optimism, and Market Expectations

Stock markets across Asia and the United States showed a clear upward momentum, supported by growing expectations of interest rate cuts, improving investor sentiment, and sector-specific recoveries. Despite concerns about overheated technology valuations and currency pressures in some regions, the broader outlook stayed optimistic across major indices.

Asian Markets: Broad Gains Led by Japan and South Korea

Asian indices strengthened in early Thursday trading, supported by overnight gains on Wall Street and rising expectations that the U.S. Federal Reserve may cut interest rates in December. The MSCI Asia ex Japan index climbed 0.5%, with Japan and South Korea leading the early advance.

Japan’s Nikkei 225 rose 1.2%, accompanied by gains in the Topix. Technology-related stocks were at the forefront: Advantest surged over 5%, SoftBank rose 4% after recovering from a prior slump linked to concerns about its OpenAI investments, and Tokyo Electron gained more than 3%. Metal stocks also moved higher, according to Dow Jones Newswires.

South Korea’s KOSPI advanced nearly 1%. The Bank of Korea maintained its benchmark interest rate at 2.5% for the fourth consecutive meeting, which was in line with market expectations. While this stability was reassuring, the country continues to deal with challenges such as a depreciating currency and an overheating housing market, CNBC noted.

In China, the CSI 300 increased almost 1%, and Hong Kong’s Hang Seng also showed modest gains. However, China’s industrial profits fell 5.5% year-on-year in October, reversing from strong gains earlier in August and September. According to Reuters-cited data, weak domestic demand and falling exports continue to pressure local businesses.

India: Markets Poised to Push to Record Highs

India’s indices were expected to open higher on Thursday, and some analysts expressed optimism that fresh all-time highs could be reached. Improved global cues, lower crude oil prices, and expectations of an upcoming Reserve Bank of India rate cut contributed to this upbeat sentiment.

Analyst Ashish Sherigar highlighted immediate resistance at 26,270 points and support at 26,050 points for the Nifty 50. Early indications from the GIFT Nifty futures—up 0.1% and trading 220 points above the previous Nifty 50 close—pointed to a positive opening.

On Wednesday, the Nifty 50 closed 1.2% higher at 26,205.30 points, while the Sensex rose to 85,609.51 points, also gaining 1.2%. Foreign and domestic investors were net buyers, purchasing shares worth INR 47.78 billion and INR 62.48 billion, respectively. This broad inflow further strengthened local sentiment.

United States: Four Straight Sessions of Gains

U.S. markets extended their rally into a fourth session on Wednesday, supported by expectations of a December interest rate cut and a recovery in AI-related stocks, which had previously dragged indices lower. According to market commentary shared with CNBC, Thanksgiving week traditionally brings stronger market performance, adding to the positive tone.

Airline stocks benefited from heavy holiday travel, with American Airlines rising nearly 4% and Delta Air Lines advancing more than 3%. Technology stocks also lifted benchmarks: Oracle jumped 4% following Deutsche Bank’s reaffirmed bullish outlook, Nvidia rebounded over 1%, and Microsoft closed nearly 2% higher.

Labor market data from the U.S. Beige Book showed a slight decline in employment, but with companies generally limiting hiring rather than resorting to layoffs. Weekly unemployment claims dropped to their lowest since April, beating forecasts.

Traders further increased their bets on an interest rate cut, with the CME FedWatch tool indicating an 84% probability of a 25-basis-point cut—up from just 30% a week earlier.

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