Daijiworld Media Network - Mumbai
Mumbai, Nov 24: Asian equities opened the week on a positive note, buoyed by rising expectations of a US interest rate cut, even as crude prices drifted lower amid fresh momentum in Russia-Ukraine peace negotiations.
Market sentiment improved after New York Federal Reserve President John Williams signaled there was still “room for a further adjustment” at the Fed’s 9–10 December meeting. His comments sharply boosted the implied probability of a rate cut to nearly 70%. According to CNBC, Williams also suggested that weakening labour conditions now pose a larger risk to the US economy than inflation.
The shift in expectations helped Asian shares recover from last week’s downturn, which was triggered by concerns of an overheating tech sector—particularly stocks tied to artificial intelligence. As per AFP, Hong Kong and Seoul climbed more than 1% on Monday, with gains also seen in Sydney, Singapore, Wellington and Taipei.
South Korea’s Kospi rose 1.13%, backed by a more than 4% jump in Samsung shares. Japan’s markets remained closed for a holiday.
Hong Kong’s Hang Seng Index advanced 1.4% to 25,568.08, while the Shanghai Composite inched down 0.1%. US futures also strengthened following solid Wall Street gains on Friday.
In Australia, Qube shares skyrocketed nearly 20% after receiving an A$11.6 billion takeover proposal from Macquarie Asset Management. Meanwhile, BHP edged up 0.4% after ruling out a merger with Anglo American.
Cryptocurrencies struggled to recover momentum despite the broader market uptick. Bitcoin hovered near $87,000—well above last week’s lows but still far from its $126,200 record high.
Oil prices continued their downward slide. Brent crude slipped 0.22% to $62.42 per barrel, while West Texas Intermediate dropped 0.26% to $57.91. The losses deepened on optimism over Russia-Ukraine peace progress, which has fuelled expectations that sanctions could be rolled back and restricted Russian crude could re-enter global markets. US President Donald Trump has set Thursday as a deadline for significant progress, though European nations are seeking revisions.
Analyst Tony Sycamore of IG told Reuters that markets were reacting largely to Trump’s vigorous push for a peace agreement—perceived as a possible “fast track” for restoring major Russian oil supply. He added that ongoing talks have overshadowed the immediate effect of the newest US sanctions on Rosneft and Lukoil, which have left nearly 48 million barrels of Russian oil stuck at sea.
A strengthening US dollar has added further weight to oil prices, with the dollar index hitting its highest level since May, making crude costlier for buyers using other currencies.
Asia-Pacific investors now turn their attention to upcoming US producer price data—one of the few major releases available before the Fed meeting, as other reports have been delayed due to the ongoing US government shutdown. A hotter-than-expected reading could complicate the central bank’s decisions despite recent signs of labour-market weakness.