Markets See-Saw on Yen Rally and U.S. Rate Speculation

Markets were cautious as the Japanese yen strengthened and Japan hinted at a potential rate hike. Stocks dipped after a robust November, but Asian markets showed resilience. Meanwhile, U.S. economic data and consumer spending, particularly from Black Friday and Cyber Monday, remain in focus as rate cut expectations rise.

Monday saw markets on edge with the Japanese yen strengthening as investors anticipated a possible rate hike by the Bank of Japan. Governor Kazuo Ueda's comments in Nagoya sparked speculation on the timing of the change, impacting stocks and government bond yields.

In the U.S., stocks surrendered gains from November's strong finish as Asian hours flagged, driven by factors like rising JGB yields and cryptocurrency slides. Hong Kong's Hang Seng defied this regional trend, buoyed by stimulus hopes linked to weak China PMIs.

Attention shifts to U.S. economic indicators on manufacturing and services, with the Federal Reserve's upcoming decisions and consumer spending trends taking the spotlight. As OPEC+ holds production steady, oil prices see a slight uptick, underlining market vigilance amid economic uncertainties.

(With inputs from agencies.)