Mixed Asia-Pacific Market Performance as Oil Prices Hit New Highs

Asia-Pacific market gained on Wall Street’s rally; the Nikkei went up 0.81%, and the ASX 0.87%. Oil prices high amid geopolitical tensions, while China’s and Hong Kong’s indices dropped.

Global Markets Overview
Asia-Pacific markets showed mixed performance on Friday, with Japan and Australia posting gains, while China and Hong Kong indices struggled amid ongoing economic concerns. The region followed a robust Wall Street session, where the S&P 500 recorded its fourth consecutive day of gains, driven by positive U.S. labor and housing data.

Market Highlights

• Nikkei 225 climbed 0.81%, buoyed by easing inflation figures in Japan.
• Shanghai Composite dropped 1.82%, while Hong Kong’s Hang Seng Index fell 1.7%, as investors eyed potential stimulus measures from Beijing.
• Australia’s S&P/ASX 200 rebounded, gaining 0.87% after a two-day losing streak.

Commodities & Rates
Oil prices surged, with Brent crude at $74.24 (+0.16%) and WTI crude at $70.9 (+0.09%), spurred by heightened geopolitical risks following escalations in Ukraine. Precious metals also rose, with gold up 0.54% to $2689.35 and silver gaining 0.48% to $30.9.

Government bond yields remained steady, with the U.S. 10-year yield at 4.410%, reflecting market stability amid easing inflation concerns globally.

Mixed Asia-Pacific Market Performance as Oil Prices Hit New Highs

Regional Market Drivers
In Japan, the October consumer price index (CPI) showed core inflation at 2.3% year-on-year, slightly above forecasts but down from September’s 2.4%. This cooling inflation supported gains in the Nikkei 225 and Topix, which climbed 0.68%.

Ongoing uncertainty over U.S.-China tariffs and delayed economic stimulus weighed on investors in China’s markets. The CSI 300 Index, a key barometer of China’s stock performance, fell over 1%, while the Shanghai Composite suffered a sharper decline.

Singapore’s economy offered a brighter picture, with Q3 GDP growth accelerating to 5.4% year-on-year, surpassing Q2’s revised 3.0%. The Singapore government has raised its 2024 GDP growth forecast to 3.5%, contributing to optimism in regional markets.

U.S. Data Boosts Global Sentiment
Overnight, U.S. economic data exceeded expectations, bolstering investor confidence. Weekly unemployment claims came in at 213,000, beating the forecast of 220,000, while existing home sales slightly outperformed at 3.96 million units versus an expected 3.95 million.

The Dow Jones surged 1.06%, the S&P 500 added 0.53%, and the Nasdaq Composite posted modest gains of 0.03%.

Key economic data, including Canada’s retail sales and U.S. flash PMI figures, are scheduled for release later in the day, which could shape market trends.

Investors also closely monitor geopolitical developments and potential policy actions, particularly in China and Europe.

While Wall Street’s rally lifted Asia-Pacific markets, uncertainties in China and broader global risks continue to weigh on sentiment. Oil prices remain volatile, reflecting geopolitical tensions, and markets will likely remain sensitive to upcoming economic data and policy decisions.

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