Asian markets mostly rose Wednesday after the S&P 500 in the U.S. closed at a record high, following a report showing the U.S. economy grew at an unexpectedly strong annual rate of 4.3% in the third quarter.
The initial government estimate for July–September growth indicated persistent inflation, while a separate report showed consumer confidence declined further in December. In comparison, the U.S. economy had expanded at a 3.8% annual pace in the second quarter.
Trading in Asia was light ahead of Christmas, with many global markets set to close Thursday. U.S. markets will close early Wednesday for Christmas Eve and remain closed Thursday.
In Asia, Tokyo’s Nikkei 225 remained flat at 50,411.10, while South Korea’s Kospi slipped 0.1% to 4,113.83. Hong Kong’s Hang Seng gained 0.2% to 25,818.93, and China’s Shanghai Composite rose 0.2% to 3,929.25. Australia’s S&P/ASX 200 fell nearly 0.4% to 8,762.70. Markets in Hong Kong and Australia closed early for Christmas Eve. Taiwan’s Taiex inched up less than 0.1%, and India’s Sensex rose 0.1%.
Gold and silver extended gains after reaching record highs earlier in the week amid geopolitical tensions. Gold rose 0.4% to $4,525.50 per ounce, while silver climbed 1.8%. U.S. futures were slightly lower early Wednesday.
On Tuesday, strong gains in tech stocks pushed the S&P 500 up 0.5% to 6,909.79, even though most stocks fell. The Dow Jones rose 0.2% to 48,442.41, and the Nasdaq gained 0.6% to 23,561.84. Nvidia advanced 3%, and Alphabet added 1.5%. Novo Nordisk surged 7.3% after U.S. regulators approved a daily pill version of its weight-loss drug Wegovy.
The report also showed inflation higher than the Federal Reserve’s target. The Fed’s preferred gauge, the personal consumption expenditures (PCE) index, climbed to a 2.8% annual rate last quarter from 2.1% in the second quarter.
Investors expect the Fed to maintain interest rates at its January meeting amid high inflation, slowing labor markets, and weak retail sales.
Early Wednesday, the dollar fell against the yen to 155.96 from 156.17, after officials suggested possible intervention. The euro slipped to $1.1793 from $1.1796. Oil prices rose slightly, with U.S. crude at $58.45 per barrel and Brent crude at $61.90, as traders monitored supply risks in Venezuela and Russia.
Source: AP