Asian Markets Slide as Fed Comments Cool Hopes of December Rate Cut
Asian shares tumbled on Thursday in a broad global sell-off after comments from Federal Reserve officials dampened expectations of a US interest rate cut next month.
MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1.6%, tracking the sharp decline on Wall Street, where US stocks snapped a four-day winning streak and suffered their biggest one-day fall since the Liberation Day tariff turmoil in April.
Investors retreated from US Treasuries, with expectations of a December Fed rate cut falling to 51%, down from 63% just a day earlier.
Across the region, losses deepened as trading continued:
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Japan’s Nikkei slid 2%
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Australia’s resource-heavy ASX 200 dropped 1.4%
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South Korea’s Kospi tumbled as much as 3.6%
In China, equities slipped 0.9% after fresh monthly data showed industrial production and retail sales weakening in October, missing analyst forecasts and extinguishing a short-lived market rally. Diplomatic tensions between Beijing and Tokyo over remarks on Taiwan added a further layer of uncertainty.
The global mood soured overnight as traders fretted over the lack of complete US economic data heading into the Fed’s December meeting, raising fears policymakers may hold off on easing until early 2026.
In commodities, gold edged slightly lower, while oil prices ticked up, supported by signs of tightening supply.
Meanwhile in the UK, new figures pointed to tentative stabilisation in the labour market, with improvements in temporary hiring. Investors are also watching corporate updates from Amaroq, Land Securities, and Melrose, as well as key European economic data due later in the day.
