Global Financial Markets Fluctuate Amid Fed Rate Speculations

Asian stocks showed mixed responses following record highs on Wall Street, driven by speculation on U.S. interest rate cuts. Bitcoin approached the $100,000 mark amid these financial shifts. Meanwhile, global economic indicators like the ISM survey and Fed comments shaped investor expectations for future rate adjustments.

Asian stocks presented a mixed outcome on Thursday after Wall Street hit record peaks, supported by optimism over the possibility of the Federal Reserve reducing interest rates. The S&P 500, Nasdaq, and Dow celebrated unprecedented highs overnight, while Bitcoin edged closer to the much-anticipated $100,000 threshold.

Within a week and a half, market sentiment largely factored in an additional U.S. rate cut for 2025. This sentiment also pushed the likelihood of a December rate cut from even to approximately 75%. The MSCI's broadest index of Asia-Pacific shares, excluding Japan, nudged down slightly, with Hong Kong's losses counterbalancing gains seen in Australia and Japan.

Japan's Nikkei rose about 0.6%, reaching a three-week peak, whereas Hong Kong's Hang Seng index dipped nearly 0.8%. The U.S. ISM survey demonstrated a slowdown in services sector activity for November, affecting benchmark 10-year Treasury yields, which fell by three basis points to 4.182%. Comments from Fed Chair Jerome Powell described the economy as steady without dismissing market speculation about rate cuts.

(With inputs from agencies.)