Asian markets rallied on Thursday, following a positive performance on Wall Street. The increase in stock prices was attributed to an update on inflation, which has opened the door for further economic support from the Federal Reserve.
In China, government leaders met in Beijing to discuss economic strategies and targets for the upcoming year. They announced the expansion of trial private pension programs nationwide, starting on December 15.
The Hang Seng index in Hong Kong rose by 1.4%, while the Shanghai Composite index increased by 0.9%. Japan's Nikkei 225 index also advanced by 1.2%, driven by strong demand for technology stocks. South Korea's Kospi index climbed 1.6%, but the S&P/ASX 200 in Australia experienced a slight decline of 0.3%.
The recent performance of U.S. stock indexes also influenced market sentiment in Asia. The S&P 500 rebounded by 0.8%, the Nasdaq composite rose by 1.8%, and the Dow Jones Industrial Average dipped slightly.
The inflation rate in the U.S. increased to 2.7% in November, primarily due to rising prices in used cars, hotel accommodations, and groceries. However, this is not expected to affect the Federal Reserve's plans to cut interest rates.
The technology sector has been performing well, with companies like Tesla and Stitch Fix contributing to the gains. In the energy sector, GE Vernova saw a significant rise, while Albertsons faced a decline following a lawsuit against Kroger.
Oil prices and currency movements also experienced fluctuations. The U.S. dollar slipped against the Japanese yen, while the euro strengthened against the dollar. These shifts in currency and oil prices reflect global supply and demand dynamics.
The decisions made by the Federal Reserve will be closely watched as they have implications for the U.S. economy and international markets.