Asian shares displays mixed performance following Wall Street's 20-month high
Date
12/11/2023 6:54:22 AM
(MENAFN) Asian shares displayed a mixed performance on Monday after Wall Street achieved a 20-month high, setting the stage for a week featuring crucial U.S. inflation data and the Federal Reserve's final rate decision of the year. U.S. futures experienced a decline, while oil prices rebounded to recover some of their recent losses. Hong Kong's Hang Seng faced a 2 percent decline, reaching 16,012.42, and the Shanghai Composite slipped 0.6 percent to 2,952.57. In China, leaders announced plans to boost spending and accelerate economic growth, although specific policy changes were not outlined.
Despite China's economy expanding by approximately 5 percent in line with government targets this year, the recovery following the easing of strict COVID-19 restrictions proved short-lived. A slowdown is anticipated in the coming year. Over the weekend, data revealed that China's consumer prices in November experienced their sharpest fall in three years, signaling weakness.
Meanwhile, Tokyo's Nikkei 225 index rose by 1.6 percent to 32,817.61, and the Kospi in Seoul recorded a marginal loss of 0.1 percent to reach 2,514.56. Australia's S&P/ASX 200 remained virtually unchanged. India's Sensex showed a 0.4 percent increase, and Bangkok's SET added 0.2 percent.
On Friday, the S&P 500 reached its highest level in 20 months, driven by a stronger-than-expected U.S. job market report. The index rose 0.4 percent to 4,604.37, securing its sixth consecutive winning week, marking the longest such streak in four years. The Dow Jones Industrial Average increased by 0.4 percent to 36,247.87, and the Nasdaq composite gained 0.4 percent to reach 14,403.97.
The bond market experienced a sharper rise in yields following the upbeat job market report, which indicated that U.S. employers added more jobs than anticipated. Wages for workers also surpassed expectations, contributing to an unexpected improvement in the unemployment rate. Despite ongoing uncertainties, Asian markets are navigating a dynamic landscape influenced by global economic indicators and policy decisions.
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