Source: AFP
Asian shares opened broadly higher on Thursday, with Hong Kong leading gains as investors worked on expectations that the US Federal Reserve will cut interest rates next year.
Tokyo fell at the open, weighed down by a stronger yen, with the currency also boosted by expectations around the Fed’s monetary policy.
Investors have been upbeat since the Fed’s most recent meeting, when it signaled its rate hike cycle could be coming to an end as global inflation slows.
Across Asia, most bourses were in positive territory on Thursday, with Shanghai, Seoul, Sydney, Taipei, Wellington, Jakarta, Manila, Singapore and Kuala Lumpur opening higher.
On Wednesday, the Dow Jones Industrial Average led gains on Wall Street, rising 0.3 percent to finish at another all-time high of 37,665.52.
US indices returned to business on Tuesday, but European markets only recovered on Wednesday, with London leading the way as it closed 0.4% higher.
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While US inflation has slowed, it remains above the Fed’s long-term target of around 2%, and analysts warned that consumer spending had yet to recover to healthy levels.
U.S. retail sales during the key holiday shopping season rose 3.1 percent year-over-year, according to Mastercard SpendingPulse research, but were notably below the 7.6 percent jump a year earlier.
“This reflects a more cautious consumer and less discounting by retailers due to better inventory management,” investor Louis Navellier said in a note.
βWhile inflation is falling, the rebound from last year’s high rate has still squeezed budgets against modest wage growth approaching 4%.
Oil markets continued to worry about the threat of the Israel-Hamas war escalating into an all-out regional conflict and ongoing attacks on key Red Sea shipping lanes by Yemen’s Houthi rebels.
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On Wednesday, French shipping giant CMA-CGM resumed some transit through the waterway, days after Danish group Maersk said it would return as a US-led maritime coalition now polices the sea route.
However, German shipping giant Hapag-Lloyd AG said it would continue to avoid the Red Sea route and channel shipments through the Cape of Good Hope.
Keys around 02:30 GMT
Tokyo – Nikkei 225 (BREAK): DOWN 0.5 percent to 33,503.94
Hong Kong – Hang Seng Index: UP 1.3 percent at 16,833.95
Shanghai – Composite: UP 0.7 percent to 2,934.65
New York – Dow: UP 0.3 percent at 37,656.52 (close)
London – FTSE 100: UP 0.4 per cent at 7,724.95 (close)
EUR/USD: UP at $1.1111 from $1.1109 on Wednesday
Dollar/yen: DOWN at 141.35 yen from 141.81 yen
GBP/USD: FLAT at $1.2806 from $1.2801
Euro/pound: UP to 86.77 pence from 86.75 pence
West Texas Intermediate: UP 0.2 percent to $74.22 a barrel
![](https://images.yen.com.gh/images/0edd2e213163507c.jpg?impolicy=cropped-image&imwidth=256)
![](https://images.yen.com.gh/images/0edd2e213163507c.jpg?impolicy=cropped-image&imwidth=256)
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Brent North Sea crude oil: ABA 0.2% to $79.82 a barrel
Source: AFP