Shares across Asia encountered a downturn on Friday, driven by Hong Kong’s main index’s retreat due to the selling of property shares after recent gains. Concurrently, the US market outlook exposed a modest increase following the Thanksgiving holiday break. Notably, oil prices exhibited mixed trends.
Japan’s Inflation Surprise and Implications for Monetary Policy
Japanese futures options reported a surprising uptick in consumer inflation, marking the first increase in four months. Big gains in food prices and hotel rates, fueled by surging tourism, contributed to a 3.30% year-on-year rise in the consumer price index for October. This unexpected trend poses challenges for both the government and the Bank of Japan, potentially prompting adjustments to the central bank’s monetary policy in the new year.
Tokyo’s Nikkei 225 Sees Modest Uptick
Against this backdrop, Tokyo’s Nikkei 225 index managed a 0.50% rise, reaching 33,625.53. However, Chinese shares retraced recent gains, influenced by expectations of increased government support for property developers. Notably, shares in Country Garden, one of the largest developers, sank 7.60% after a 16.00% surge the day before.
OPEC+ Meeting and Global Stock Market Rally
With OPEC postponing a meeting to discuss production cuts until next week, US benchmark crude oil experienced a minor decline, reaching $76.63 per barrel. Brent crude, the international standard, slightly increased to $81.50 per barrel.
European Market Flotation: Modest Gains Amid US Holiday
With the Thanksgiving break in the US, European shares saw modest gains. Germany’s DAX and the CAC 40 in Paris both gained 0.20%, while Britain’s FTSE 100 edged 0.20% higher.
Black Friday Impact and Consumer Spending Concerns
Investors closely monitor American retailers during the Black Friday shopping season amid concerns about slowing spending. The latest quarterly results from retailers suggest weakening consumer appetites for spending even as inflation eases and employment remains robust.
Federal Reserve’s Stance and Global Economic Market Outlook
As inflation eases and employment remains robust, investors are becoming more optimistic about the Federal Reserve’s stance on interest rates. Fed officials emphasized that decisions on rates will depend on incoming reports, with a crucial update expected next week when the government releases its October report on a key inflation measure.
Investors Optimistic About the Fed’s Interest Rate Policy
As inflation rate eases and consumer spending remains stable, global markets assess the overall economic landscape. Turkey prices and other Thanksgiving-related costs have reportedly decreased in Europe, contributing to a positive sentiment.
Impact of Global Economic Factors and Thanksgiving on Mark Stocks
Thursday’s market outlook showed US benchmark crude oil lost 47 cents to $76.63 per barrel, while Brent crude gained 23 cents to $81.50 per barrel. The US dollar fell slightly against the Japanese yen, reaching 149.40 from 149.54 yen, and the euro remained unchanged at $1.0906.