On Tuesday, global markets experienced mixed movements, influenced by Wall Street’s continued strength and the Bank of Japan’s (BOJ) decision to maintain its accommodative credit policy. While Shanghai’s benchmark faced losses, Hong Kong’s market surged by 2.5%, and U.S. futures remained stable with a slight dip in oil prices.
The Nikkei 225 index in Tokyo increased by 0.3%, nearing its 1989 all-time record. The Bank of Japan emphasized the persistent uncertainties in global economies and financial markets, committing to its ultra-lax monetary policy with a benchmark interest rate of minus 0.1%.
The central bank also expressed readiness to implement additional easing measures if necessary. Speculation around the possible end of the negative interest rate policy contributed to a lower Japanese yen against the U.S. dollar.
Conversely, disappointment over China’s decision to keep the loan prime rate unchanged led to selling in Shanghai, where the Composite index dropped by 0.4%. However, Hong Kong’s Hang Seng witnessed a notable 2.5% rise, helping offset earlier losses in the year. Across Asia, South Korea’s Kospi rose by 0.4%, and Australia’s S&P/ASX 200 added 0.6%. Bangkok’s SET remained nearly unchanged.
The upcoming week is marked by numerous S&P 500 companies reporting their Q4 2023 results, including American Airlines, Intel, Procter & Gamble, and Tesla. Analysts anticipate an overall dip in earnings for the fourth quarter, with the potential for a fourth decline in five quarters.
As Treasury yields ease, reaching 4.09% on the 10-year Treasury, the stock market continues to benefit from reduced pressure, and expectations for upcoming rate cuts drive positive sentiment. U.S. benchmark crude oil held steady at $74.76 per barrel, and Brent crude edged slightly higher to $80.05 per barrel.
