Asian equities mostly advanced ahead of the Federal Reserve’s final interest rate decision for the year.
Japan’s leading Nikkei 225 index dipped slightly by 0.2% to 39,281.06 following a 3.8% year-over-year export increase for November. In contrast, imports decreased by 3.8%, according to the Ministry of Finance data.
Nissan’s stock experienced a temporary trading halt after surging 22% amid rumours of a potential merger with Honda. Consequently, Honda’s shares dropped by up to 3%.
Both companies released a statement clarifying that they are exploring closer collaboration but have not made any final decisions. In August, Nissan, Honda, and Mitsubishi, a member of the Nissan alliance, agreed to collaborate on sharing electric vehicle components such as batteries and to jointly develop software for autonomous driving to better navigate significant changes in the automotive industry.
The Japanese yen weakened ahead of the Bank of Japan’s upcoming meeting, where the central bank is anticipated to maintain its current benchmark interest rate during Friday’s policy update.
In Hong Kong, the Hang Seng Index rose by 0.6% to 19,815.30, while China’s Shanghai Composite Index increased by 0.7% to 3,385.64. South Korea’s Kospi surged 1% to 2,481.87, and Australia’s S&P/ASX 200 inched down slightly by 0.1% to 8,304.00.
Meanwhile, on Wall Street, the Dow Jones Industrial Average declined by 0.6% to 43,450.55, the S&P 500 fell by 0.4% to 6,050.63, and the Nasdaq Composite decreased by 0.3% to 20,109.06.
Yields on 10-year US Treasury bonds retreated from three-week highs ahead of the Federal Reserve’s rate decision and economic forecasts. The yield on the benchmark US Treasury notes dropped to 4.395% from 4.399% late Monday.
