Asian Stocks Rally Amid Rate-Cut Optimism and Yen Fluctuations

Asian stocks steadied as December 2025 begins, driven by U.S. rate-cut optimism. The Japanese yen strengthened as investors focused on a potential rate hike. Meanwhile, U.S. economic data and consumer spending insights are anticipated, while oil prices rose following OPEC+'s decision to maintain output levels.

As December 2025 kicks off, Asian stocks showed stability, buoyed by optimism concerning potential U.S. rate cuts, enhancing risk appetite before the release of key economic data. The Japanese yen made gains, with investors closely watching for a potential rate hike announcement.

In stocks, the MSCI Asia-Pacific index maintained its position, while Japan's Nikkei experienced a slight decline. US futures dropped in Asian trading, yet Hong Kong's Hang Seng index saw significant gains, contributing positively to the regional markets.

Investors' focus remains on upcoming U.S. economic reports on manufacturing, services, and consumer sentiment, with anticipation that a slowdown may occur short of a recession. Concurrently, oil prices rose as OPEC+ opted not to change output levels, wary of a supply glut.

(With inputs from agencies.)