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A market in Tokyo in June 2023.
Richard A. Brooks | Afp | Getty Images
Asia-Pacific markets open mostly lower Friday after Wall Street saw the Dow Jones Industrial Average drop more than 200 points and S&P 500 retreat from a record high.
Traders in Asia assessed household spending data out of Japan. Spending grew 2.9% in October compared to the previous month, beating expectations of a 0.4% growth by economists polled by Reuters. Year-over-year, household spending fell 1.3% in October, less than an expected 2.6%.
India's central bank will announce its interest rate decision Friday. The Reserve Bank of India is expected to hold its key policy rate at 6.50% after the country's retail inflation surged to a 14-month high in October.
Japan's Nikkei 225 fell 0.5% on open, while the Topix lost 0.4%.
South Korea's Kospi was up 0.7%, while the Kosdaq was down 1.2%.
Australia's S&P/ASX 200 was 0.26% lower.
Hong Kong Hang Seng index futures were at 19,637 higher than the HSI's last close of 19,560.4.
Morgan Stanley is bullish on India heading into 2025
India remains the "market to beat" heading into 2025, according to Morgan Stanley.
In a Thursday note, the bank wrote it expects India to be one of the best-performing emerging markets in the new year.
"With strong earnings, macro stability and domestic flows, it is hard to argue against India's investment case," strategist Ridham Desai wrote. "That said, potential global growth risks plus a bunching up of IPOs and near-term growth concerns present challenges."
— Lisa Kailai Han
Global tech earnings growth in 2025 will drive further equity gains, UBS says
UBS is staying bullish on domestic equities. The firm cited the fundamentally strong state of the U.S. economy and forecasted further market gains fueled by rate cuts and artificial intelligence.
"With big tech's ongoing commitment to AI spending, and improving AI adoption and monetization trends, we forecast earnings growth of 22% for the global tech sector in 2024 and 18% in 2025," said Solita Marcelli, chief investment officer Americas for UBS Global Wealth Management, in a Thursday note to clients. "So, without taking any single-name views, we believe investors should position for further equity gains."
Marcelli said she favors technology, utilities and financials sectors within U.S. stocks and sees value in having a diversified exposure to Asia, excluding Japan.
— Pia Singh
S&P's year-to-date performance is second-highest of 21st century so far, according to Deutsche Bank
The S&P 500 ended Wednesday 0.61% higher to close at yet another new record. This upside has added on to the benchmark's strong year-to-date performance, putting it on pace to potentially notch its best-performing year of the 21st century if stocks can rise again in December.
"It now means the S&P 500 is up +27.6% so far in 2024, which is only a couple of points behind its 2013 gain (+29.6%) that still stands as the strongest annual advance of the 21st century so far," Deutsche Bank wrote in a Thursday note.
— Lisa Kailai Han
Oil prices rise as OPEC+ delays production increase
A view shows the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside its headquarters in Vienna, Austria, May 28, 2024.
Leonhard Foeger | Reuters
Oil prices rose slightly Thursday after OPEC+ members agreed to delay production increases.
U.S. crude oil futures gained 43 cents, or 0.63%, to $68.97 per barrel by 9:33 a.m. ET. Brent crude futures rose 41 cents, or 0.57%, to $72.72 per barrel.
Eight OPEC+ members led by Saudi Arabia and Russia will keep voluntary production cuts of 2.2 million barrels per day in place until the end of March 2025.
The cuts will then be gradually phased out on a monthly basis until the end of September 2026 to "support market stability," according to a statement from the countries.
OPEC+ wants to bring supply back to the market is under pressure from soft demand in China and strong production in the U.S., which are driving prices lower.,
— Spencer Kimball
English (US)