CANBERA (dpa-AFX) - Asian stock markets are trading mostly higher on Thursday, following the broadly positive cues from Wall Street overnight, as traders continue to express optimism about the outlook for interest rates following the recent dovish comments from some US Fed officials. Asian markets closed mostly higher on Wednesday.
In the recent days, New York Fed President John Williams, Fed Governor Christopher Waller, and San Francisco Fed President Mary Daly have voiced their preference for lowering rates further, reinforcing expectations for a rate cut.
CME Group's FedWatch Tool is currently indicating that investors are betting on an 84.7% chance of a 25-basis-point interest rate cut at the Federal Reserve's December 9-10 meeting. This has soared from just 30.1 percent a week ago.
Investor confidence was also boosted following reports indicating that Kevin Hassett, who favors lowering interest rates, may become the next U.S. Fed Chair as the current Chair's term expires in May 2026. Hassett's economic perspectives align much with that of U.S. President Donald Trump, who is in favor of a low-interest rate regime.
Australian shares are trading modestly higher on Thursday, extending the gains in the previous three sessions, following the broadly positive cues from Wall Street overnight. The benchmark S&P/ASX 200 is moving above the 8,600 level, with gains in gold miners, financial and technology stocks.
The benchmark S&P/ASX 200 Index is gaining 15.80 points or 0.18 percent to 8,622.30, after touching a high of 8,649.30 earlier. The broader All Ordinaries Index is up 17.20 points or 0.19 percent to 8,916.50. Australian stocks ended significantly higher on Wednesday.
Among major miners, Fortescue and Mineral Resources are losing more than 1 percent each, while BHP Group is edging down 0.3 percent and Rio Tinto is down almost 1 percent.
Oil stocks are mostly lower. Santos is down more than 1 percent, Beach energy is declining more than 2 percent and Woodside Energy is slipping almost 1 percent, while Origin Energy is adding almost 1 percent.
In the tech space, Afterpay owner Block is adding more than 2 percent, Zip is surging more than 5 percent, WiseTech Global is advancing almost 6 percent, Appen is up 1.5 percent and Xero is gaining 2.5 percent.
Among the big four banks, Commonwealth Bank and National Australia bank are edging up 0.1 to 0.5 percent each, while Westpac is edging down 0.2 percent. ANZ Banking is flat.
Among gold miners, Evolution Mining is gaining more than 2 percent, Northern Star Resources is adding more than 1 percent, Genesis Minerals is up almost 2 percent and Newmont is advancing 2.5 percent, while Resolute Mining is losing almost 1 percent.
In economic news, the value of new private capital expenditure in Australia was up a seasonally adjusted6.4 percent on quarter in the third quarter of 2025, the Australian Bureau of Statistics said on Thursday - coming in at A$48.999 billion. That beat forecasts for an increase of 0.6 percent and was up from 0.2 percent in the three months prior. On a yearly basis, capex was up 6.9 percent.
In the currency market, the Aussie dollar is trading at $0.653 on Thursday.
The Japanese stock market is trading sharply higher on Thursday, extending the gains in the previous two sessions, following the broadly positive cues from Wall Street overnight. The Nikkei 225 is moving above the 50,200 level, with gains in across most sectors led by technology and financial stocks.
The benchmark Nikkei 225 Index closed the morning session at 50,203.38, up 644.31 points or 1.30 percent, after touching a high of 50,322.14 earlier. Japanese stocks ended sharply higher on Wednesday.
Market heavyweight SoftBank Group is surging more than 6 percent, while Uniqlo operator Fast Retailing is edging down 0.1 percent. Among automakers, Honda is edging down 0.2 percent, while Toyota is flat.
In the tech space, Advantest is surging more than 5 percent, while Screen Holdings and Tokyo Electron are advancing almost 3 percent each.
In the banking sector, Sumitomo Mitsui Financial is advancing almost 3 percent, while Mitsubishi UFJ Financial and Mizuho Financial are gaining almost 1 percent each.
Among the major exporters, Canon is gaining almost 1 percent, Panasonic is advancing more than 3 percent and Sony is up more than 1 percent, while Mitsubishi Electric is edging down 0.4 percent.
Among other major gainers, Resonac Holdings is surging more than 7 percent, Ibiden is advancing more than 6 percent, w Denka is gaining almost 5 percent and Sumitomo Metal Mining is adding almost 4 percent, while Toppan Holdings and Lasertec are advancing more than 3 percent each. TDK is up almost 3 percent.
Conversely, Mitsubishi Materials is declining more than 3 percent.
In the currency market, the U.S. dollar is trading in the lower 156 yen-range on Thursday.
Elsewhere in Asia, South Korea is up 1.2 percent, while China, Hong Kong, Singapore and Taiwan are higher by between 0.2 and 0.7 percent each. New Zealand, Malaysia and Indonesia are lower by between 0.2 and 0.6 percent each.
On Wall Street, stocks moved mostly higher over the course of the trading session on Wednesday, extending the upward trend seen over the past few sessions. The major averages moved to the upside in morning trading and remained firmly positive throughout the afternoon.
The major averages closed higher for the fourth consecutive session, continuing to claw their way back towards their record highs. The Dow climbed 314.67 points or 0.7 percent to 47,427.12, the Nasdaq jumped 189.10 points or 0.8 percent to 23,214.69 and the S&P 500 advanced 46.73 points or 0.7 percent to 6,812.61.
The major European markets also moved to the upside on the day. While the German DAX Index jumped by 1.1 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index both advance by 0.9 percent.
Crude oil prices rose on Wednesday as doubts were cast on the possible success of the new U.S. proposal to end the Russia-Ukraine war. West Texas Intermediate crude for January delivery was up $0.61 or 1.05 percent at $58.56 per barrel.
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