Asian Stocks Mixed following Wall Street's Eighth Straight Week of Gains
Dec 25,2023·6:57AM GMTZ
DALIAN, China (AP) — Asian shares were mixed on Monday following Wall Street's eighth consecutive week of gains. Tokyo's Nikkei 225 added 0.2%, the Taiex in Taiwan gained 0.1%, and Bangkok's SET was up 0.2%. However, the Shanghai Composite index lost 0.3%. Most markets in the region and beyond were closed for the Christmas holiday.
On Wall Street, the S&P 500 rose 0.2% on Friday, sitting less than 1% below its record high set nearly two years ago. The Dow slipped less than 0.1%, while the Nasdaq gained 0.2%.
Wall Street's attention was primarily focused on a suite of economic reports that showed a slowdown in inflation, unexpected consumer spending growth, and improved consumer sentiment. Inflation slowed more than expected in November, providing relief to investors concerned about rising prices. Furthermore, consumer spending unexpectedly rose, indicating that the economy remains resilient despite headwinds. The reports also revealed improved consumer sentiment, reflecting optimism among Americans about the current state of the economy.
The Federal Reserve is currently attempting to strike a balance between slowing the economy enough to cool inflation but not so much that it tips into a recession. Falling bond yields have helped boost the stock market, and traders are speculating that the Federal Reserve will continue to cut interest rates in 2024. Many investors are betting that the central bank will lower its main interest rate by at least 1.50 percentage points by the end of next year.
Overall, Asian markets continue to show mixed results, with investors keeping a close eye on economic indicators and developments in the ongoing trade negotiations between the United States and China.
On Wall Street, the S&P 500 rose 0.2% on Friday, sitting less than 1% below its record high set nearly two years ago. The Dow slipped less than 0.1%, while the Nasdaq gained 0.2%.
Wall Street's attention was primarily focused on a suite of economic reports that showed a slowdown in inflation, unexpected consumer spending growth, and improved consumer sentiment. Inflation slowed more than expected in November, providing relief to investors concerned about rising prices. Furthermore, consumer spending unexpectedly rose, indicating that the economy remains resilient despite headwinds. The reports also revealed improved consumer sentiment, reflecting optimism among Americans about the current state of the economy.
The Federal Reserve is currently attempting to strike a balance between slowing the economy enough to cool inflation but not so much that it tips into a recession. Falling bond yields have helped boost the stock market, and traders are speculating that the Federal Reserve will continue to cut interest rates in 2024. Many investors are betting that the central bank will lower its main interest rate by at least 1.50 percentage points by the end of next year.
Overall, Asian markets continue to show mixed results, with investors keeping a close eye on economic indicators and developments in the ongoing trade negotiations between the United States and China.