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Asian shares fell as China reported disappointing economic data for November, while bitcoin surged to new highs, exceeding $106,000. Japan's Nikkei 225 and Hong Kong's Hang Seng both declined, reflecting broader market unease ahead of the U.S. Federal Reserve's upcoming meeting, where further interest rate cuts are anticipated. Oil prices also dropped, with U.S. crude at $70.82 per barrel.
Asian shares fell on Monday following disappointing economic data from China, with retail sales slowing and factory output growth flat. Meanwhile, bitcoin surged to new highs, surpassing $106,000, driven by optimism over a lighter regulatory approach under U.S. President-elect Donald Trump. In the stock market, Japan's Nikkei 225 dipped 0.1%, while Hong Kong's Hang Seng lost 0.8%. The S&P 500 ended nearly flat, marking its first weekly loss after three consecutive gains, despite a significant rise in Broadcom's shares following strong earnings.
Most Asian stocks declined ahead of the U.S. Federal Reserve's interest rate decision, with Chinese shares falling due to disappointing retail sales data, raising concerns about the economy's recovery. Japan's market remained stable as the Bank of Japan is expected to maintain current rates, while South Korea's index showed little change following the president's impeachment. Overall, investor sentiment was cautious globally as markets awaited clarity from the Fed amidst persistent inflation concerns.
Asian stock markets are cautious as rising bond yields challenge equity valuations, particularly in the tech sector. Disappointing retail sales data from China, which rose only 3.0% in November, underscores the need for aggressive stimulus. The Federal Reserve is expected to cut rates by 25 basis points this week, with future easing plans closely watched amid a backdrop of fluctuating currencies and geopolitical uncertainties.
European stock futures are poised to open lower following a decline in Chinese equities, driven by disappointing retail sales data that fell short of expectations. Concerns are heightened by Moody’s credit downgrade of France and a looming vote of confidence for German Chancellor Olaf Scholz, which could lead to snap elections amid economic challenges.In Asia, stocks also fell, with China's retail sales increasing by only 3% year-on-year, below the anticipated 5%. This has raised doubts about the effectiveness of stimulus measures, while Korean stocks faced volatility following the impeachment of President Yoon Suk Yeol.
Asia begins the final trading week of 2024 with a focus on the monthly 'China data dump' and central bank decisions, including a likely rate cut from the Federal Reserve. Investors remain optimistic amid easing monetary policies, while the Bank of Japan may consider a rate hike following positive business surveys. Key Chinese economic indicators, including industrial production and retail sales, are set to be released, alongside concerns over the South Korean won following President Yoon Suk Yeol's impeachment.
South Korea's efforts to regulate cryptocurrencies have stalled amid political turmoil following a martial law declaration and impeachment proceedings against President Yoon Suk Yeol. The National Assembly has postponed discussions on key crypto bills until at least mid-2025, leaving the industry in uncertainty and raising concerns about the country's competitiveness in digital finance. Meanwhile, Bitcoin prices plummeted by 30% following the martial law announcement, reflecting the market's volatility amid ongoing instability.
European markets are poised for a flat to lower start, with the U.K.’s FTSE 100 expected to open 5 points lower and Germany’s DAX down 7 points. Traders are closely monitoring geopolitical developments in the Middle East following the ousting of Syrian President Bashar al-Assad, while U.S. stock futures remain stable ahead of key inflation data due Wednesday.
Syrian President Bashar al-Assad has resigned and fled the country as rebel forces successfully seized Damascus, marking a significant shift in the ongoing conflict. Meanwhile, South Korean prosecutors have launched an investigation into President Yoon Suk Yeol for treason and abuse of power following a failed coup. In other news, the EU has finalized a major trade deal with four South American nations, and a US appeals court has upheld a law that could force TikTok's owner, ByteDance, to sell the platform or face a ban next year.
Syria's President Bashar Al-Assad has fled to Russia, marking the end of 50 years of his family's rule as rebel forces advance towards Damascus. Meanwhile, South Korea's President Yoon Seok Yeol survived an impeachment vote, and a U.S. court upheld a law requiring TikTok's sale. Despite geopolitical turmoil, U.S. markets reached new records, with traders anticipating a Federal Reserve rate cut that could boost market performance.

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