Asian stocks surge as Fed rate cut bets offset China fears
Investing.com-- Most Asian stocks rallied on Wednesday as weak U.S. labor market indicators fueled more bets that the Federal Reserve had limited room to keep interest rates higher, helping investors look past a warning on China’s economy.
JOLTs data showed job openings fell more than expected in October, pointing to some cooling in the labor market. The reading spurred a rise in bets for a March rate cut by the Fed, with traders now pricing in a nearly 54% chance of a 25 basis point cut.
U.S. Treasury yields also sank after the reading, benefiting global technology shares. The JOLTs reading came just days before key nonfarm payrolls data for November, which is set to offer clearer cues on the labor market this Friday.
Japan’s Nikkei 225 index was among the best performers in Asia, rising 1.7% on outsized gains in manufacturing and technology stocks. The index broke a three-day losing spree, as strength in the yen kept export-heavy stocks under pressure.
Australia’s ASX 200 index rose 1.4% even as data showed the country’s economy grew less than expected in the third quarter. But the data showed that some facets of the economy- particularly domestic demand and spending- remained robust, which helped offset an outsized decline in exports.
South Korea’s KOSPI added 0.5%. Shares of media group YG Entertainment Inc (KQ:122870) rallied over 20% after it said it had signed a renewed contract with all four members of the wildly popular girl group Blackpink.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose slightly on Wednesday, while strength in tech stocks helped push Hong Kong’s Hang Seng index about 0.6% higher.
But all three indexes were nursing steep year-to-date losses, and have vastly underperformed
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