Asian Stocks Rally as US Equities Gain: Market Trends and Economic Outlook

Asian Stocks Increase After US Equities Gains: Markets Close

After Treasuries stopped a selloff that had driven 10-year rates as high as 4.5%, Asian stocks rose in tandem with gains in US stocks. As benchmarks in China, Japan, South Korea, and Australia increased, MSCI’s measure of regional share increased by up to 0.7%.  Any news pertaining to President-elect Donald Trump’s anticipated administration is being keenly monitored by traders. 

Stocks

According to a news report, Trump’s transition team informed advisers that they intend to make a government framework for fully autonomous vehicles one of the Transportation Department’s objectives. As a result, the Nasdaq 100 outperformed Monday, with Tesla Inc. climbing 5.6%. The outlook for additional stimulus and the nation’s recommendations for raising corporation valuation are being reevaluated by traders.

After 10-year rates fell three basis points during the US session, treasuries saw no movement in Asia. The dollar index published by Bloomberg slightly declined. The Central Bank of Australia believes that its present policy settings are suitable in an effort to reduce core inflation, which is still “too high,” according to the minutes of its November meeting. 

After the minutes were released, the rates on three-year sovereign bonds and the Australian currency both experienced intraday falls. David Kostin, chief equities strategist at Goldman Sachs Group Inc., predicts that the S&P 500 Index will rise until the end of next year due to ongoing US economic expansion and profit growth.

The cryptocurrency is back at its highest point ever, helped along by a series of events that show how the US is embracing the digital asset sector more and more under crypto evangelist Donald Trump.

Amid simmering geopolitical tensions, oil surged Monday, but little changed. Goldman Sachs repeated its prediction that prices will hit $3,000 an ounce next year, as the metal continued to rise.

According to those acquainted with the situation, Trump’s transition team in Washington is thinking of appointing hedge fund manager Scott Bessent as director of the White House’s National Economic Council and former Federal Reserve official Kevin Warsh as Treasury secretary.

US stock market: S&P 500, Nasdaq, Dow Jones, Nvidia, Walmart, Target profits, and Federal Reserve policy

Stocks

Investors will evaluate the demand for chips and the longevity of the AI frenzy that propelled a large portion of the market’s advance this year when Nvidia releases its third-quarter earnings on Wednesday. 

According to BofA Global Research, the chip designer, which contributed 20% of the S&P 500’s return in the previous year, is anticipated to propel roughly 25% of its EPS increase in the third quarter. According to a Reuters article, Nvidia’s stock dropped 1.3% after it was revealed that its latest AI processors were causing servers to overheat.

Wall Street is still in a good position as 2024 ends, even though stock indices have lost some significant gains that followed Trump’s resounding triumph.

Last week, the S&P 500 and the Nasdaq recorded their worst weekly losses in almost two months due to growing anticipation that the Federal Reserve may decrease the pace of policy easing and uncertainty around the impact of Trump’s cabinet picks. On Monday, the S&P 500 climbed 23.00 points, or 0.39 percent, to 5,893.62, the Nasdaq Composite gained 111.69 points, or 0.60 percent, to 18,791.81, and the Dow Jones Industrial Average dropped 55.39 points, or 0.13 percent, to 43,389.60.

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