Asia stocks closing in on strongest month since January
By Kane Wu
HONG KONG (Reuters) — Asian stocks were poised to clock their strongest performance in 10 months at the end of Thursday's trading, even as most regional stock markets opened listless after mixed messages from the Fed and a similar struggle in U.S. stocks overnight.
The MSCI Asia-ex-Japan stocks index is up 6.7% so far this month, setting it on course to mark the best month since January.
South Korea's KOSPI has led the rally in Asia with 10.5% gains this month, followed closely by Taiwan and Japan's Nikkei Average index.
Stock markets around the world struggled on Wednesday, after a strong month driven by market expectations of peak Federal Reserve rates, and as a fall in the dollar and in U.S. bond yields loosened financial conditions.
Ten-year U.S. yields are down more than 60 basis points in November, on track for the steepest monthly drop since late 2008.
While U.S. central bank officials on Wednesday sent mixed messages, investors still focused on comments made on Tuesday by Fed Governor Christopher Waller, an influential and previously hawkish voice at the bank. Waller had said rate cuts could begin in months if inflation keeps easing.
Meanwhile, data from the U.S. showed a strong economy in the third quarter and also a downtrend in inflation, reinforcing expectations the Fed might cut interest rates earlier than expected.
«We think liquidity and momentum can still support markets through December,» said Redmond Wong, market strategist, Greater China at Saxo Markets, and that rate cuts could be as early as the first quarter as U.S. economy has shown signs of deceleration.
U.S. financial conditions are the loosest since early September and have eased 100 basis points in a month, according to Goldman
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