Asian markets rallied on Thursday, following a strong performance on Wall Street. The positive momentum was driven by an update on inflation, which suggests further economic support from the Federal Reserve. Chinese leaders also outlined economic plans and targets for the upcoming year, creating a favorable environment for investors.
The Hang Seng index in Hong Kong surged by 1.7%, while the Shanghai Composite index saw a 0.6% increase. Japan's Nikkei 225 index climbed 1.3%, driven by strong demand for technology stocks. South Korea's Kospi index added 0.9%, and Taiwan's Taiex climbed 0.7%. However, Australia's S&P/ASX 200 edged down by 0.2%, and India's Sensex remained relatively unchanged.
In the US, stock indexes resumed their upward trajectory following an inflation report that suggests potential monetary easing from the Federal Reserve. The S&P 500 rose by 0.8%, the Nasdaq composite climbed 1.8%, and the Dow Jones Industrial Average dipped slightly.
The inflation rate in the US ticked up to 2.7% in November, primarily driven by higher prices for used cars, hotel accommodations, and groceries. Despite these figures, the Federal Reserve is expected to continue cutting interest rates in the upcoming meeting.
Tesla's stock surged by 5.9%, reflecting investor confidence in the tech sector. Stitch Fix saw a remarkable 44.3% increase in its stock price after reporting a smaller-than-expected loss for the latest quarter. GE Vernova, a spinoff from General Electric, also saw a 5% increase in its stock price. On the other hand, Albertsons faced a 1.5% decline after filing a lawsuit against Kroger.
In the commodities market, US benchmark crude oil prices saw a slight increase, while Brent crude, the international benchmark, also gained.
Currency markets experienced notable shifts, with the US dollar slipping against the Japanese yen and the euro appreciating against the dollar. These currency fluctuations reflect broader economic trends and investor sentiment.
As the global financial landscape continues to evolve, factors such as inflation data, corporate earnings, and central bank policies will remain critical in shaping market trajectories.