Asia-Pacific markets are expected to rebound after a decline on Wall Street due to comments made by U.S. Federal Reserve Chair Jerome Powell.
Powell stated that the central bank is taking a measured approach to lowering interest rates, citing strong U.S. economic growth as a reason. This has prompted investors in Asia to reassess their positions, especially with important economic data from Japan and China on the horizon.
Japan is set to release its third-quarter GDP figures, while China will unveil October statistics for retail sales, industrial output, and urban unemployment.
Futures contracts for Japan's Nikkei 225 suggest a positive opening, while Hong Kong's Hang Seng index futures are also pointing to an upward trend.
In the U.S., all three major stock indexes experienced declines, with the Dow Jones Industrial Average falling by 0.47%. The so-called "Trump trades" have started to lose momentum, with stocks like Tesla seeing significant declines. The market's cooling rally has raised concerns among investors, particularly as key stocks associated with the Trump administration's policies have seen pullbacks.
The U.S. ETF industry has seen record inflows this week, driven by post-election exuberance. The dollar has strengthened against major currencies, reflecting shifting market sentiments and economic expectations.