Asian equities were set to open higher Thursday after US stocks notched a fourth straight gain ahead of the Thanksgiving break, lifted by growing expectations for interest-rate cuts.
Equity futures for Japan, Australia and mainland China signaled early gains, while Hong Kong looked flat. The S&P 500 rose 0.7% Wednesday, extending its advance after reclaiming its 50-day moving average — a key technical support level. The tech-heavy Nasdaq 100 added 0.9%.
The gains tracked firming expectations for Federal Reserve easing, with money markets pricing in a roughly 80% chance of a Fed quarter-point cut next month and three more by the end of 2026. A week ago, traders expected only three cuts in total.
The release of the US central bank’s Beige Book showed US employment declined slightly and prices rose moderately, according to the survey of regional business contacts. Spending also declined further, except among higher-end shoppers. Separate initial jobless claims fell slightly, defying expectations for a modest increase.
The US data “reinforced the notion that there are crosscurrents and mixed performance in the real economy,” said Ian Lyngen at BMO Capital Markets. “That being said, there is nothing within the reports that will derail the FOMC from cutting by 25 basis points on Dec. 10.”
Long bonds rallied slightly while the shorter end of the curve ended Wednesday’s session lower. An index of the dollar fell 0.3%, while gold and Bitcoin advanced. Australian yields fell in early Thursday trading.
The cross-asset moves signal cautious optimism across global markets after concerns around tech valuations hammered US stocks earlier in the month. Sentiment has since improved as dovish remarks by Fed officials revived bets on a December rate cut.
Those expectations strengthened after it emerged that White House National Economic Council Director Kevin Hassett is the leading contender for the next Fed chair — a choice investors see aligning with President Donald Trump’s push for lower rates.
In Asia, data set for release Thursday includes business confidence in New Zealand, industrial profits for China and an interest rate decision in South Korea. Bank of Japan official Asahi Noguchi is also set to speak. US markets will be closed Thursday for Thanksgiving.
In Japan, Prime Minister Sanae Takaichi’s government plans to issue more new bonds to fund its economic package, according to people familiar with the matter.
UK Budget
Elsewhere, China Vanke Co. proposed delaying repayment on a local bond for the first time, while Hong Kong property group New World Development Co. received additional bondholder support in its debt swap plan, a filing showed.
Hong Kong rescue workers are seeking to contain a major blaze at a high-rise complex that’s killed at least 36 people and resulted in 279 people missing.
In the UK, Chancellor of the Exchequer Rachel Reeves expanded her fiscal buffer to £22 billion ($29 billion) in her latest budget. She funded the increase with £29.8 billion in new taxes, including levies on gambling and prime real estate.
The pound and gilts gained as she delivered her speech in Parliament. They had earlier swung after a premature release of an Office for Budget Responsibility analysis gave traders plenty to parse.
Oil bounced off a one-month low as the White House signaled optimism about a peace deal between Russia and Ukraine, which could bring back Moscow’s barrels into an already saturated market.
Some of the main moves in markets:
Stocks
Hang Seng futures were little changed as of 7:23 a.m. Tokyo time
S&P/ASX 200 futures rose 0.2%
Nikkei 225 futures rose 0.9%
Currencies
The Bloomberg Dollar Spot Index fell 0.3%
The euro was little changed at $1.1596
The Japanese yen was little changed at 156.47 per dollar
The offshore yuan was little changed at 7.0699 per dollar
Cryptocurrencies
Bitcoin was little changed at $90,246.73
Ether fell 0.1% to $3,019.89
Bonds
Australia’s 10-year yield declined four basis points to 4.48%
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