BANGKOK — Asian shares experienced a decline on Tuesday following a record-setting performance by the Nasdaq, as anticipation builds for an upcoming Federal Reserve meeting that could influence market trends for the new year.
U.S. futures dipped, and oil prices reversed previous losses.
In Tokyo, the Nikkei 225 index fell 0.2% to 39,364.68, despite gains in technology shares, particularly SoftBank Group Corp., whose CEO announced plans for a significant investment in U.S. projects.
SoftBank’s shares on the Tokyo Stock Exchange surged by 4.4%.
Chinese markets continued to decline, with Hong Kong’s Hang Seng index down 0.1% at 19,773.60 and the Shanghai Composite index sliding 0.7% to 3,361.49. Analysts noted that recent disappointing data in China pressures policymakers to enhance stimulus measures to boost domestic demand.
South Korea’s Kospi index dropped 1.3% to 2,456.81 amid rising political tensions following the announcement to question impeached President Yoon Suk Yeol regarding his recent martial law decree. The Constitutional Court commenced meetings to determine his political future.
In contrast, Australia’s S&P/ASX 200 rose by 0.8% to 8,314.00. Taiwan’s Taiex index fell 0.1%, while Bangkok’s SET dropped 0.8%.
On Monday, U.S. stock indexes exhibited mixed signals. The S&P 500 increased 0.4% to 6,074.08, and the Nasdaq composite reached a record close of 20,173.89 with a 1.2% rise. The Dow Jones Industrial Average lagged behind, falling by 0.3% to 43,717.48.
Broadcom’s shares soared 11.2% after a strong profit report, buoyed by growing interest in its artificial intelligence offerings.
Wednesday marks a key event as the Federal Reserve announces its final interest rate decision for the year, with expectations of a third consecutive cut aimed at stimulating the slowing job market.
The Fed’s projections for the future of the federal funds rate and economic indicators will be released post-meeting, where questions will be addressed by the Fed Chair.
Expectations for further interest rate cuts have contributed to the S&P 500 setting an all-time high 57 times this year, reflecting resilience in the economy despite previous rate hikes aimed at addressing inflation.
Additionally, MicroStrategy shares surged as it benefited from rising bitcoin prices, hitting an all-time high of over $107,000.
In bond markets, Treasury yields remained stable, with the 10-year yield slightly declining to 4.39%.
In early Tuesday trading, U.S. benchmark crude oil prices increased marginally, while international Brent crude oil also saw a rise.
The U.S. dollar experienced a minor dip against the Japanese yen and the euro.
