Global Markets React to Central Bank Decisions Amid Geopolitical Tensions

Asian markets faced a downturn as central banks globally prepared to adjust borrowing costs, while U.S. inflation data awaited. U.S. payrolls showed recovery, supporting expectations for a Fed rate cut. Political unrest in France and South Korea added complexity to Middle Eastern dynamics, though economic sentiment improved.

Asian markets faced challenges on Monday, particularly in South Korea, as investors braced for a busy week of central bank meetings that are expected to lower borrowing costs. The U.S. anticipates a crucial inflation report, signaling potential further policy easing.

In China, a surprising 0.6% drop in the consumer price index in November highlights a need for stronger policy stimulus. Meanwhile, the Central Economic Work Conference in Beijing is set to outline China's economic future for 2025, though market expectations for new policy announcements remain low.

Economic sentiment improved following the U.S. November payrolls recovery, suggesting an imminent Federal Reserve rate cut, despite geopolitical tensions in France and South Korea complicating matters in the Middle East. Tech stocks rallied, boosting Nasdaq's value by over $1 trillion last week.

(With inputs from agencies.)