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Markets across the Asia-Pacific region presented a mixed performance on Monday, reflecting the influence of recent remarks by John Williams, President of the New York Federal Reserve. Williams hinted at the possibility of a third interest rate cut within the year.
In his statements on Friday, Williams indicated that the Federal Reserve might consider reducing its benchmark interest rate, citing concerns over labor market weaknesses, which he believes pose a more significant economic risk than rising inflation.
The Federal Reserve has just one remaining meeting scheduled for 2025, set for December 9-10. At present, the target interest rate stands between 3.75% and 4.00%.
According to the CME FedWatch tool, the likelihood of a quarter-percentage-point rate cut has risen to approximately 70%, a notable increase from around 44% during the week leading up to November 14.
The Fed has just one meeting left for 2025, which will take place on Dec. 9-10 stateside. The target rate is currently at 3.75% to 4.00%.
Fed funds futures are pricing in around a 70% chance for a quarter-percentage-point cut, according to the CME FedWatch tool, up from about 44% during the week through Nov. 14.
Asian markets declined across the board last week as traders fled tech stocks, with heavyweights such as SoftBank, Samsung Electronics, and Baidu posting losses.
Hong Kong’s Hang Seng index rose 1.97% to 25,716.5, boosted by tech and healthcare stocks, while mainland China’s CSI 300 fell 0.12% to 4,448.05.
South Korea’s markets turned negative after rising earlier in the session. The Kospi closed 0.19% lower at 3,846.06, while the small-cap Kosdaq fell 0.87% to 856.44. Kospi heavyweight Samsung Electronics rose 2%.
Australia’s S&P/ASX 200 rose 1.29% to 8,525.1, rebounding from a 1.59% loss on Friday.
On Monday, shares of logistics group Qube climbed nearly 20% after Macquarie Asset Management made an offer of 11.6 billion Australian dollars ($7.49 billion) to acquire the firm.
Mining giant BHP rose about 0.62% after the company announced it was no longer considering a merger with British miner Anglo American.
India’s Nifty 50 and the BSE Sensex were trading flat as of 2 p.m. local time.
Japan’s markets were closed for a public holiday.
On Friday in the U.S., all three major indexes posted a rebound, with the Dow Jones Industrial Average gaining 1.08%, the Nasdaq Composite advancing 0.88%, and the S&P 500 finishing 0.98% higher.
—CNBC’s Sean Conlon and Pia Singh contributed to this report.
