Asia-Pacific Markets Waver While Wall Street Reaches New Peaks

Asia-Pacific markets performed mixed, while Wall Street hit record highs, fueled by optimism over Scott Bessent’s Treasury Secretary nomination.

Tuesday a mixed day for global financial markets, with Asia-Pacific equities showing varied results. At the same time, Wall Street surged to new record highs following President-elect Donald Trump’s nomination of Scott Bessent as Treasury Secretary.

Asia-Pacific Performance

Asian markets experienced uneven activity, as some key indices fell while others posted modest gains:

• Japan: The Nikkei 225 dropped 1.49%, with the broader Topix index also losing 1.5%. Investors reacted to a rise in the country’s service producer price index (PPI), which increased 2.9% year-on-year, slightly higher than September’s 2.8%.
• Australia: The S&P/ASX 200 declined by 0.68%, retreating from a record closing high on Monday.
• South Korea: The Kospi fell by 0.71%, and the tech-heavy Kosdaq slid 0.9%.
• China & Hong Kong: Contrastingly, China’s CSI 300 gained 0.34%, while Hong Kong’s Hang Seng Index inched up 0.49%.
• Singapore: Manufacturing output disappointed with a 1.2% year-on-year increase, missing expectations of a 2.2% rise and marking a sharp slowdown from September’s 9.8% growth.

Asia-Pacific Markets Waver While Wall Street Reaches New Peaks

Wall Street Hits All-Time Highs

In the United States, major indices extended their upward momentum, buoyed by optimism over the incoming administration’s leadership.

• The Dow Jones Industrial Average climbed 440.06 points (0.99%) to close at 44,736.57, setting a new all-time high.
• The S&P 500 rose 0.3% to 5,987.37, also breaking a record.
• The Nasdaq Composite gained 0.27%, ending at 19,054.84.

Investors welcomed Trump’s nomination of Scott Bessent, founder of Key Square Group, to head the Treasury Department. Analysts expect Bessent’s expertise in global macroeconomics to reassure markets amid potential fiscal policy changes.

Commodities and Bonds

In the commodities market, gold edged up 0.54% to $2,645.35 per ounce, while silver rose 0.48% to $30.69. Crude oil prices were steady, with Brent Oil gaining 0.26% to $72.24 per barrel and WTI crude increasing 0.29% to $69.17.

Government bond yields saw little change:

• U.S. 10-year Treasury yield held at 4.289%.
• UK 10-year gilt yield was at 4.343%.
• Germany’s 10-year Bund yield stood at 2.203%.

Other Key Developments

• Corporate Profits in Canada fell 2.5% quarter-on-quarter, missing the expected 1.5% increase.
• Upcoming market events include the release of U.S. new home sales data at 03:00 PM GMT and the FOMC meeting minutes at 07:00 PM GMT.

With Wall Street reaching new highs and mixed signals in Asia, investors remain focused on upcoming economic data and geopolitical developments. Analysts will also closely monitor central bank actions for further cues on monetary policy.

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