Asian Stocks Jump After Global Gauge Hits New Peak: Markets Wrap
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Asian stocks rallied after gauges of US and global equities hit fresh records, with sentiment boosted by this week’s Federal Reserve’s rate cut and its upbeat assessment of the US economy.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Asian stocks rallied after gauges of US and global equities hit fresh records, with sentiment boosted by this week’s Federal Reserve’s rate cut and its upbeat assessment of the US economy.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.MSCI Inc.’s index of Asian shares was up 0.9% on Friday, poised for its highest close in about a month. Japan’s Topix led regional gains, with financials favored on bets that a Bank of Japan interest-rate hike next week is all but certain. Chinese equities underperformed after the nation’s leadership signaled it will maintain economic support but refrain from ramping up stimulus next year.While the S&P 500 climbed 0.2% to an all-time high on Thursday, some caution for tech names persisted. Shares of Broadcom Inc., a chip company vying with Nvidia Corp. for AI computing revenue, slid in late trading after its sales outlook for red-hot market failed to meet investors’ lofty expectations. S&P 500 futures were steady on Friday though contracts on the tech-heavy Nasdaq 100 fell 0.1%.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Thursday’s price action lifted the MSCI All Country World Index — one of the broadest measures of the stock market — to a new closing high. Up nearly 21% in 2025, it is on track for its best year since 2019.“The momentum should continue into year-end. With rate cuts underway, a new Fed chair on deck, and earnings trending higher, the bull market looks positioned to extend into 2026,” said Gina Bolvin, President of Bolvin Wealth Management Group. “As more companies adopt AI, participation should broaden and sectors beyond the Magnificent Seven may start to show strength.”Delivering a third consecutive interest-rate reduction on Wednesday, Fed Chair Jerome Powell voiced optimism that the US economy will strengthen as the inflationary impact from tariffs fades away. While officials maintained their outlook for just one cut in 2026, traders have stuck to bets for two such moves.The Fed now expects the US economy to grow by 2.3% next year, up from its previous projection of 1.8%, while anticipating that the pace of inflation will slow to 2.4%.An index of the dollar traded around a two-month low on Friday and was on track for a third weekly loss. Yields on 10-year Treasuries were little changed after a small gain on Thursday, when data showed that initial jobless claims rose more than expected in the Dec. 6 week.“The Fed’s ‘hawkish-but-bullish’ cut last night reinforces this: stronger 2026 growth, faster disinflation,” said Florian Ielpo, head of macro at Lombard Odier Investment Managers. “Cuts are continuing, but they’re no longer automatic — and that’s usually a constructive backdrop for equities.”In Asia, Thailand markets were in focus after Prime Minister Anutin Charnvirakul moved to dissolve parliament, setting the stage for an early election after reports of a key political party backing his minority government moving to withdraw its support.Elsewhere, copper climbed to a fresh record high on Thursday and most other industrial metals rose after the Fed move. Gold steadied after three days of gains, supported by the prospect of further monetary easing in the US, while silver traded near a record high. Oil rallied from its lowest close in almost two months and Bitcoin flip-flopped in a tight range around $92,500.The tech sector continues to be on traders’ radar after dominating much of the recent market action following Oracle Corp.’s results — which brought worries about valuations and whether heavy spending on AI infrastructure will pay off back into focus.“The effect of Oracle has been greater than the Fed. This already tells us everything as we’ve been witnessing a strong concentration and one theme — AI — leading the market,” said Alberto Tocchio, a portfolio manager at Kairos Partners. “This doesn’t mean that AI is gone or it’s a bubble, but we need to focus on a wider scale.”Corporate NewsSome of the main moves in markets:StocksCurrenciesCryptocurrenciesBondsCommoditiesThis story was produced with the assistance of Bloomberg Automation.—With assistance from Joanna Ossinger and Richard Henderson.Postmedia is committed to maintaining a lively but civil forum for discussion. 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