Gauges in Japan, South Korea and Australia all edged higher at the open, while futures contracts for Hong Kong looked flat. That came after the S&P 500 Index advanced 0.7% and the tech-heavy Nasdaq 100 added 0.9% ahead of the Thanksgiving break.
The gains tracked firming expectations for an easing by the Fed, with money markets pricing in a roughly 80% chance of a quarter-point rate cut next month and three more by the end of 2026. A week ago, traders expected only three cuts in total.
A four-day rally in Treasuries stalled on Wednesday, with the 10-year yield at 4%, as fresh US labor market data came in stronger than expected. An index of the dollar extended its losses to a third day, while gold advanced. As sentiment improved, Bitcoin climbed above $90,000 for the first time in almost a week, clawing back ground after a month-long selloff.
The cross-asset moves signal cautious optimism across global markets after concerns around tech valuations hammered US stocks earlier in the month. Sentiment has since improved as dovish remarks by Fed officials revived bets that the central bank will lower borrowing costs at its meeting next month.
“The uncertainty surrounding the event is subsiding,” Kyle Rodda, a senior analyst at Capital.com, wrote in a note to clients.The release of the US central bank’s Beige Book showed US employment declined slightly and prices rose moderately, according to the survey of regional business contacts. Spending declined further, except among higher-end shoppers. Also, initial jobless claims fell slightly, defying expectations for a modest increase. The US data “reinforced the notion that there are crosscurrents and mixed performance in the real economy,” said Ian Lyngen at BMO Capital Markets. There is nothing within the reports that will derail the Fed from cutting by 25 basis points on Dec. 10, he said.
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