Stories
Asian Stocks Rebound as US Fed Rate Outlook Eases Pressure
- •Asian equities bounced back after two sessions of losses as investors bet the US Federal Reserve will not aggressively tighten policy next year.
- •South Korea's Kospi rose 1.73 percent, while Taiex and Nikkei 225 also recorded gains.
- •Chinese shares faced downward pressure amid growing skepticism over substantial economic stimulus from Beijing.
- •Indian stocks gained momentum after Finance Minister Nirmala Sitharaman expressed willingness to discuss transaction taxes on share trading.
- •Oil prices continued to climb due to renewed West Asia conflict concerns threatening energy supplies.
Key Questions Answered
Asian equities rebounded after two sessions of losses as investors anticipated that the US Federal Reserve would avoid aggressive policy tightening next year. This shift followed comments from New York Fed President John Williams, who indicated that no further tightening would be needed in 2027.
South Korea's Kospi led the regional recovery by rising 1.73%. Additionally, Taiex added 0.52% and the Nikkei 225 climbed 0.47%, while the Topix slipped 0.11% and Hang Seng futures remained largely unchanged.
Crude oil prices climbed for their fifth consecutive day, with US crude reaching about $94.80 a barrel and Brent rising to $106.51. This increase was driven by renewed attacks in West Asia that deepened uncertainty over the recovery of energy shipments from the Arabian Gulf, fueling fears of persistent inflation.
