Asian markets mostly rise after S&P 500 sets new high
Asian stock markets mostly advanced on Wednesday after the benchmark S&P 500 closed at another record high, supported by data showing the U.S. economy expanded at a stronger-than-expected 4.3% annual rate from July through September.
The U.S. government’s initial estimate for third-quarter growth indicated that inflation remained elevated, while a separate report showed consumer confidence weakening further in December, News.Az reports, citing AP.
The U.S. economy grew at a 3.8% annual pace in the April–June period.
Trading across Asia was relatively quiet, with many global markets set to close on Thursday for the Christmas holiday. U.S. markets are scheduled to end early on Wednesday for Christmas Eve and remain closed on Christmas Day.
Japan’s Nikkei 225 was flat at 50,411.10, while South Korea’s Kospi slipped 0.1% to 4,113.83.
In China, Hong Kong’s Hang Seng index rose 0.2% to 25,818.93, and the Shanghai Composite added 0.2% to 3,929.25. Australia’s S&P/ASX 200 fell nearly 0.4% to 8,762.70. Markets in Hong Kong and Australia closed early due to Christmas Eve.
Taiwan’s Taiex gained less than 0.1%, while India’s Sensex advanced 0.1%.
Gold and silver continued their rally after hitting record highs earlier in the week, fueled by heightened geopolitical tensions. Gold climbed 0.4% early Wednesday to $4,525.50 per ounce, extending gains of about 70% for the year. Silver rose 1.8%.
U.S. futures edged lower early Wednesday.
On Tuesday, strong gains in technology stocks lifted the S&P 500 by 0.5%, even though most stocks in the index declined. The index closed at 6,909.79. The Dow Jones Industrial Average added 0.2% to 48,442.41, while the Nasdaq composite rose 0.6% to 23,561.84.
Nvidia climbed 3%, and Alphabet, Google’s parent company, gained 1.5%. Novo Nordisk surged 7.3% after U.S. regulators approved a pill version of its weight-loss drug Wegovy, the first daily oral medication approved to treat obesity.
Updated government data showed inflation remaining above the Federal Reserve’s preferred level. The Fed’s favored inflation measure, the personal consumption expenditures index, rose to a 2.8% annual rate last quarter, up from 2.1% in the second quarter.
Later Wednesday, the U.S. Labor Department is set to release weekly data on applications for jobless benefits, a key indicator of layoffs.
Investors are largely expecting the Federal Reserve to keep interest rates unchanged at its January meeting, despite signs of elevated inflation, weakening consumer confidence, a cooling labor market and softer retail sales.
In currency trading early Wednesday, the U.S. dollar continued to weaken against the Japanese yen after officials warned of possible intervention against excessive currency moves. The dollar slipped to 155.96 yen from 156.17 yen. The euro edged lower to $1.1793 from $1.1796.
Oil prices inched higher as traders monitored potential supply disruptions in Venezuela and Russia. U.S. benchmark crude rose 7 cents to $58.45 per barrel, while Brent crude added 3 cents to $61.90 per barrel.
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