financetom
World
financetom
/
World
/
MORNING BID ASIA-Buoyant dollar keeps bulls in check
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
MORNING BID ASIA-Buoyant dollar keeps bulls in check
Dec 2, 2024 2:02 PM

Dec 3 (Reuters) - A look at the day ahead in Asian

markets.

Investors in Asia go into Tuesday's session with a spring in

their step following the upswing in global stocks and risk

appetite on Monday, but wary that the buoyant U.S. dollar can

extinguish that optimism in a flash.

Also keeping regional sentiment in check will be unease around

China's economic predicament, even though purchasing managers

index data over the last 72 hours showed that factory activity

in November expanded at the fastest pace in months.

Much of that - the pickup in Chinese manufacturing activity,

deepening disquiet about the outlook, and the dollar's renewed

vigor - is tied to U.S. President-elect Donald Trump's hardline

stance on trade and threats of heavy tariffs when he takes

office next month.

His social media broadside on Saturday to countries

contemplating backing away from the "mighty" U.S. dollar appears

to have had an initial effect. Excluding Nov. 6, the day after

the U.S. election, the dollar's 0.6% appreciation on Monday was

its biggest rise in six months.

Europe's economic and political travails, especially in France,

are certainly at play, while the yen is drawing support from

bets that the Bank of Japan could raise interest rates later

this month.

But the dollar's independent strength cannot be ignored, and

bullish sentiment toward emerging markets is rarely sustained

for long when the dollar is on the march.

Nor can China's weakness be ignored. Some analysts say the

positive PMI surprises are due to a ramp up in production before

tariffs from Washington are levied, and China's underlying

economic health remains fragile.

China's bond market would appear to back up that assertion.

The 10-year yield on Monday fell below 2% for the first time,

while the 30-year yield is now below its Japanese equivalent for

the first time in at least 20 years.

Still, investors will draw comfort from the S&P 500 and Nasdaq's

rise to fresh peaks on Monday, and U.S. Federal Reserve Governor

Christopher Waller saying he is leaning toward a rate cut later

this month.

Remarkably, after Monday's spike the S&P 500 has registered

more than 50 record highs this year. But will that be enough to

lift Asian markets on Tuesday?

Asia's calendar on Tuesday is light, with South Korean

inflation the only major economic indicator on tap. It is one of

several CPI releases this week following Indonesia's on Monday

and ahead of the latest snapshots from the Philippines, Taiwan

and Thailand later in the week.

Economists polled by Reuters expect South Korea's annual

rate of headline inflation in November to accelerate to 1.7%

from a three and a half year low of 1.30% in October. That would

mark the biggest jump since August last year.

Here are key developments that could provide more direction

to markets on Tuesday:

- South Korea consumer inflation (November)

- Bank of Thailand governor Sethaput Suthiwartnarueput

speaks

- Thailand's finance minister Pichai Chunhavajira speaks

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
GLOBAL MARKETS-Asia markets stumble as hot PPI print reins in Fed rate cut hype
GLOBAL MARKETS-Asia markets stumble as hot PPI print reins in Fed rate cut hype
Aug 14, 2025
* Producer price data prompts wobble on Wall Street * Nikkei resumes advance as GDP beats estimates * Markets awaiting U.S.-Russia meeting in Alaska By Gregor Stuart Hunter SINGAPORE, Aug 15 (Reuters) - Stocks in Asia made an uneven recovery as higher-than-expected producer price inflation dampened expectations of a jumbo rate cut at the Federal Reserve's September meeting, while U.S....
Brazilian digital lender Nubank posts 42% profit boost; shares jump
Brazilian digital lender Nubank posts 42% profit boost; shares jump
Aug 14, 2025
SAO PAULO (Reuters) -Nu Holdings ( NU ), which runs Brazilian digital lender Nubank, posted on Thursday a 42% increase in its net profit from a year earlier on a foreign exchange-neutral basis, causing its shares to jump more than 8% in after-hours trading. The firm, which has nearly 123 million clients across Brazil - its main market - Colombia...
Japan's Nikkei rises as yen weakens, economy shows resilience
Japan's Nikkei rises as yen weakens, economy shows resilience
Aug 14, 2025
TOKYO, Aug 15 (Reuters) - Japan's Nikkei advanced on Friday, capping a week in which the benchmark index climbed to a record high, as the yen weakened and data showed the nation's economy was surprisingly resilient. The Nikkei 225 Index gained 0.46%, following its ascent to an all-time high of 43,451.46 earlier in the week. The broader Topix climbed nearly...
PRECIOUS-Gold poised for weekly fall as bets fade for big Fed rate cut
PRECIOUS-Gold poised for weekly fall as bets fade for big Fed rate cut
Aug 14, 2025
Aug 15 (Reuters) - Gold was subdued on Friday and was heading for a weekly fall, as hotter than expected U.S. inflation data dented expectations for a super sized 50 basis point U.S. interest rate cut in September. FUNDAMENTALS * Spot gold was down 0.1% at $3,333.58 per ounce, as of 0120 GMT. Bullion has fallen 1.9% for the week....
Copyright 2023-2026 - www.financetom.com All Rights Reserved