Asian Stocks Climb as U.S. Markets Set New Benchmarks

Asian stocks climb as Wall Street hits record highs. The Nikkei surges 2.22%, the Nasdaq reaches a new peak, and investors eye U.S. payroll data for rate clues.

Global Surge in Markets
Asia-Pacific stock markets rallied on Tuesday, riding the wave of Wall Street’s impressive performance where the S&P 500 and Nasdaq Composite both notched record highs. Optimism about the global economic outlook, fueled by stronger-than-expected U.S. data and easing concerns about inflation, underpinned gains across the region.

Regional Market Performance
Japan’s Nikkei 225 surged 2.22%, its largest single-day jump in weeks, as investors cheered a tech-sector recovery and optimism over corporate earnings. The broader Topix index climbed 1.71%. In Australia, the S&P/ASX 200 rose 0.71%, supported by gains in mining and energy stocks, as commodity prices stabilized.

South Korea’s Kospi and Kosdaq indices advanced 1.71% and 2.03%, respectively, buoyed by signs of resilience in the semiconductor sector. However, November inflation data showed a rise to 1.5% year over year, slightly missing market expectations of 1.7%.

Meanwhile, Hong Kong’s Hang Seng Index added 0.36% despite ongoing concerns about China’s slowing economy. Mainland China’s CSI 300 remained flat, reflecting investor caution amid subdued data from the property and manufacturing sectors.

Asian Stocks Climb as U.S. Markets Set New Benchmarks

Wall Street Recap
In the U.S., the S&P 500 climbed 0.24% to close at 6,047.15, while the Nasdaq Composite rose 0.97% to finish at 19,403.95. Both indices achieved new all-time intraday and closing highs, driven by robust gains in tech and consumer discretionary stocks.

However, the Dow Jones Industrial Average fell 0.29%, shedding 128.65 points to close at 44,782.00. The blue-chip index had briefly crossed the 45,000 threshold but retreated as profit-taking weighed on financial and industrial sectors.

Commodity and Bond Market Movements
Commodities remained steady, with gold inching up 0.24% to $2,639.35 per ounce and silver gaining 0.68% to $31.19 per ounce. Oil prices saw modest increases, with Brent crude up 0.16% at $72.04 per barrel and WTI crude rising 0.19% to $68.27 per barrel.

In the bond markets, yields were mixed. The U.S. 10-year Treasury yield hovered at 4.207%, while the UK’s 10-year gilt yield was slightly higher at 4.209%. Germany’s 10-year bund yield stood at 2.0335%.

Economic Data and Expectations
Global investors closely monitor upcoming economic releases, including the U.S. JOLTS job openings data at 03:00 PM GMT and Friday’s critical payrolls report. Stronger-than-expected U.S. final manufacturing PMI data, which came in at 48.4 against an expected 47.7, bolstered sentiment. Canada’s manufacturing PMI also beat forecasts, rising to 52.0.

These figures will likely shape market expectations ahead of the Federal Reserve’s December meeting. Participants will be eager to gauge the central bank’s stance on interest rates amid signs of economic resilience.

Looking Ahead
With major indices at record highs, investors are weighing the potential for further upside against the risks of inflationary pressures and geopolitical uncertainties. Eyes remain on the Federal Reserve and economic indicators that could tip the scales in favor of continued rate hikes or a more dovish policy stance.

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