Asian Stocks Rise, Dollar Approaches 5-Month Low Amid Fed Rate Cut Speculation; Oil Prices Mixed in Wake of Houthi Attacks, Holiday-Limited Trading

Asian Stocks Rise, Dollar Approaches 5-Month Low Amid Fed Rate Cut Speculation; Oil Prices Mixed in Wake of Houthi Attacks, Holiday-Limited Trading

Asif Iqbal | December 26, 2023 | 01:18 PM IST | Breaking News | Follow on Google News

Asian Stocks Rise, Dollar Approaches 5-Month Low Amid Fed Rate Cut Speculation; Oil Prices Mixed in Wake of Houthi Attacks, Holiday-Limited Trading.image/reauters

Asian Stocks Rise, Dollar Approaches 5-Month Low Amid Fed Rate Cut Speculation; Oil Prices Mixed in Wake of Houthi Attacks, Holiday-Limited Trading

Asian stocks made modest gains, and the dollar hovered close to a five-month low amid indications of easing US inflation, fueling expectations of an early interest rate cut by the Federal Reserve in the coming year, according to Reuters. The mixed performance of oil prices followed a 3% increase in both Brent crude and US West Texas Intermediate crude last week, attributed to Houthi attacks on ships disrupting global shipping and trade amid the ongoing Israel-Gaza conflict.

Trading activity remained subdued on the day after Christmas, with several markets, including those in Australia, Hong Kong, Britain, and Germany, closed for Boxing Day. The holiday-shortened week was expected to see limited market movements.

The MSCI’s broadest index of Asia-Pacific shares outside Japan posted a 0.48% increase, potentially ending the year with a nearly 2% gain after a 20% drop in 2022. Japan’s Nikkei rose by 0.16%, maintaining its status as the best-performing major Asian stock market with a remarkable 27% surge in 2023. E-mini futures for the S&P 500 also increased by 0.15%.

Market sentiment reflected a 75% likelihood of a 25 basis points rate cut by the Fed in March, as per the CME FedWatch tool, a significant shift from the 21% probability at the end of November. Expectations were also pricing in over 150 basis points of rate cuts for the upcoming year.

In Asia, China’s stocks experienced a 0.47% decline, primarily attributed to semiconductor shares, while gaming stocks stabilized following announcements of share buyback plans by several companies. Hong Kong’s Hang Seng Index remained closed.

In the currency market, trading was subdued due to the holiday season, with the dollar index at 101.61, remaining close to the five-month low of 101.42 reached on Friday. The index was down 1.8% for the year, poised to end its two-year winning streak.

Commodity markets saw a 0.33% increase in US WTI crude futures to $73.80 per barrel, while Brent futures were at $79.33, down 0.08% on the day. Spot gold added 0.5% to reach $2,064.02 per ounce.

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Asif Iqbal

Asif Iqbal is a seasoned news writer with a passion for delivering the latest updates to the public. Currently serving as the senior writer at VoM News, a prominent news outlet known for its comprehensive coverage of diverse topics, Asif has established himself as a reliable source of information. With a keen eye for detail and a knack for storytelling, he consistently provides readers with well-crafted articles that cover a wide range of news categories. His dedication to journalistic integrity and his commitment to staying ahead of the news curve make him an invaluable asset to Vom News, ensuring that readers are always well-informed on the issues that matter most. You can find his work and stay updated on current events by visiting vomnews.in.