2024-12-23 07:03:04The Nikkei 225 surged 459 points or 1.2% to close at 39,161, while the broader Topix Index soared 25 points or 0.9% to end at 2,727, recovering from the prior session's weakness. This upturn was driven by a surge in US futures after softer-than-expected US inflation in November raised hopes for further monetary easing by the Fed next year. Meanwhile, Bank of Japan Governor Kazuo Ueda indicated the central bank would wait for more information on Japanese wages and US President-elect Donald Trump’s policies before deciding on an interest-rate hike. On the business front, Honda and Nissan Motors announced they will merge in 2026, with negotiations beginning this week. A press briefing is expected later today after the companies hold board meetings. The news boosted Honda shares by 3.7% and Nissan shares by 1%. Other strong performers among major companies included Advantest Co. (4.5%), NTT Data Group (2.3%), Toyota Motor (2.2%), Mitsubishi UFJ Financial (1.5%), and Sony Group (0.7%).
2024-12-23 03:14:03The offshore yuan remained steady at 7.30 per dollar, as traders awaited the People's Bank of China's decision on the One-Year Medium-Term Lending Facility rate later this week for clues on future policy moves. Last week, the central bank left its one-year and five-year loan prime rates unchanged at historic lows of 3.1% and 3.6%, respectively, in line with market expectations. Both rates were lowered in prior months, with reductions in July and October. Investors now continued to assess China's economic outlook following Beijing's pledge of additional policy support for the coming year, including further rate cuts, reductions in banks' reserve requirements, and stronger fiscal measures. Externally, the yuan found support from an easing US dollar after the Federal Reserve’s preferred inflation gauge came in below expectations, reigniting rate cut bets.
2024-12-20 21:03:04US stocks bounced back on the last triple witching day of the year, with the S&P 500 up 1%, the Nasdaq rising 0.8% while the Dow gained 497 points. The rally followed cooler-than-expected inflation data, with November’s PCE index showing a 2.4% year-over-year increase, slightly below expectations. This helped alleviate market concerns sparked by the Federal Reserve’s forecast of fewer rate cuts in 2025. Sentiment was also weighed down by the threat of a government shutdown and global market pressure from tariff threats. The healthcare sector took the spotlight after Novo Nordisk’s new obesity drug missed targets in its test, driving the pharmaceutical giant’s ADRs to plunge 17.7%. In turn, equities for competitor Eli Lilly gained 1.4%. Considering the week, all the three major averages sank 2.3% with the Dow booked its worst week since 2023.