In Asian markets, investor sentiment cooled after the risk rally earlier in the week lost momentum, and Chinese economic data failed to generate a boost.
The MSCI Asia Pacific Index ended its three-day winning streak, as investors largely dismissed news that China’s economy had expanded at its fastest pace in six quarters. Although China’s benchmark CSI 300 Index initially turned positive following the data release, it later became volatile. Shares in South Korea and Australia fell slightly, while Japan’s main index lost nearly 1%.
Investors are also bracing for next week’s Bank of Japan meeting, with many expecting that a rate hike is almost inevitable.
China’s latest figures indicate that the policy adjustments implemented since late September have helped mitigate the challenges posed by a prolonged property slump and persistent deflationary pressures.
In Hong Kong, the Hang Seng Index slipped 0.1% to 19,509.68, and the Shanghai Composite declined 0.1% to 3,231.30. Tokyo’s Nikkei 225 dropped 1% to 38,193.05, while South Korea’s Kospi edged down by 0.3% to 2,521.46. Australia’s S&P/ASX 200 also fell by 0.1%, settling at 8,316.70.
The U.S. dollar remained near a two-year high, with the Bloomberg Dollar Spot Index rising by 0.1%, following remarks from Treasury secretary nominee Scott Bessent, who emphasized the importance of retaining the dollar as the world’s reserve currency.
U.S. stocks retreated after Wednesday’s rally, with the S&P 500 dipping 0.2%, the Nasdaq 100 falling 0.7%, and the Dow Jones Industrial Average sliding 0.2%. A gauge tracking the “Magnificent Seven” megacaps dropped by 1.9%.
The yield on 10-year U.S. Treasuries fell by 0.04 percentage points to 4.61%.
Meanwhile, Bitcoin and gold both posted gains. The cryptocurrency edged up 0.6% to $100,262.36, and spot gold increased by 0.7% to $2,714.48 an ounce.
Oil prices eased as well, with West Texas Intermediate crude falling 1.7% to $78.66 per barrel.
