Stock Market Update: Mixed Performance in Asia Amid U.S. Thanksgiving Holiday Closure

Asian shares exhibited a mixed performance on Friday as U.S. markets remained closed due to the Thanksgiving holiday celebrated on Thursday.

Market Overview

A slight rise was observed in U.S. futures and oil prices ahead of their reopening. In Japan, the Nikkei 225 index dropped by 0.4%, settling at 38,183.31, following a government report revealing that Tokyo's inflation rate surged to 2.6% in November, a notable increase from the previous month's 1.8%. This rise in inflation was largely attributed to a spike in fresh food prices. Furthermore, the core inflation rate, which excludes fresh food, saw a modest rise to 2.2% year-on-year, up from 1.8% the previous month.

Impact of Inflation on Policies

The uptick in inflation is likely to heighten expectations that the Bank of Japan will continue to increase its benchmark lending rate. This monetary policy shift has led to a stronger Japanese yen, which traded at 149.92 to the dollar early Friday, a considerable recovery from a rate above 155 yen per dollar just a week prior. Currently, the central bank's policy rate stands at 0.25% after previously exiting a prolonged period of negative rates earlier this year, believing that it had met its 2% inflation target.

Regional Performance

In South Korea, the Kospi faced a loss of 1.3%, closing at 2,471.68, as the central bank adjusted its benchmark interest rate downwards on Thursday to alleviate the burden on its decelerating economy. Australia's S&P/ASX 200 index also fell by 0.2%, attaining a value of 8,428.20.

Contrarily, Chinese stocks rallied today, with Hong Kong's Hang Seng index climbing 1.3% to 19,616.44, while the Shanghai Composite index surged by 1.6%, reaching 3,348.20. Investors appear optimistic about an approaching economic planning meeting typically held every December.

Looking Ahead

U.S. markets are expected to resume trading with a half-day session on Friday, following the Thanksgiving holiday. The holiday brought a brief pause amid ongoing discussions concerning President-elect Donald Trump's upcoming policies after taking office. Earlier in the week, markets reacted negatively to his plans, particularly the potential for immediate tariff increases on imports from Canada, Mexico, and China.

Recent U.S. Market Movements

This past Wednesday, there was a decline in U.S. stocks, with the S&P 500 dropping 0.4%, the Dow Jones falling by 0.3%, and the Nasdaq composite—dominated by technology stocks—declining by 0.6%.

Oil and Currency Update

In terms of commodities, U.S. benchmark crude oil observed an increase of 46 cents, bringing its price to $69.18 per barrel. The international benchmark, Brent crude, rose by 10 cents, now priced at $72.88 per barrel. The euro also showed slight appreciation, rising to $1.0575 from $1.0557.

Stocks, Markets, Economy