Asian stock markets continued their upward trajectory on Thursday, mirroring a sustained rally on Wall Street. The positive sentiment is fueled by growing investor confidence that the US Federal Reserve will implement another interest rate cut next month.
Rate Cut Bets Fuel Global Market Optimism
Market analysts point to recent comments from Federal Reserve officials and a series of weaker-than-expected jobs reports as the primary drivers behind this optimism. Traders are now pricing in an 80 percent chance of a rate cut at the December 10 policy meeting. This is a significant shift from earlier expectations, which foresaw only three reductions in total for the coming year.
The rally comes after a period of concern over stretched market valuations, particularly in the technology sector. However, these worries have been temporarily overshadowed by the prospect of lower borrowing costs, which make riskier assets more attractive.
Broad-Based Gains and Corporate News
The market upswing was broad-based across the region. Key indices in Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Seoul, Taipei, and Jakarta all posted gains. This rally is notable for involving a wider range of companies, with smaller-cap firms benefiting from the expectation of cheaper credit.
In corporate news, Tokyo-listed beer titan Asahi saw its shares fall after announcing a delay in its financial results. The company cited a ransomware cyberattack that began in September, which disrupted its order and shipping systems.
In a major deal from South Korea, tech giant Naver Financial is set to acquire Dunamu, the operator of the Upbit cryptocurrency exchange. The transaction is valued at over $13 billion, pending board approval.
Bitcoin Rebounds as Risk Appetite Returns
The improved risk appetite also provided a boost to cryptocurrencies. Bitcoin broke back above the $90,000 mark, recovering from a recent seven-month low around $80,000. However, the digital asset remains below its record high of over $126,200, which it touched in early October.
Analysts suggest that the current momentum could continue. "While funds are well aware that US markets are closed... if Asia-based participants see a meaningful skew for further upside in US equity markets, it would make sense for them to get positioned for that risk," said Chris Weston of Pepperstone.
With Wall Street closed for the Thanksgiving holiday, Asian traders took the lead in extending a global rally that has now seen the three main US indexes climb for four consecutive days.
