Shares in Asia displayed varied results as a consequence of a technology-driven decline in the US stock market. Tokyo's Nikkei 225 index increased by 0.7% to reach 38,400.00, and Australia's S&P/ASX 200 rose by 0.8% to 8,473.30. However, in China, investor profit-taking led to a drop in shares, with Hong Kong's Hang Seng index falling 1.3% to 19,358.51 and the Shanghai Composite index slipping 0.4% to 3,295.70.
The South Korean Kospi remained unchanged at 2,503.01 after the Bank of Korea reduced its key rate by a quarter percentage point to 3% in an effort to alleviate pressure on the nation's slowing economy. The move also involved downward revisions in economic growth projections for 2024 and 2025, reflecting a cautious outlook in the face of challenging economic conditions. On the other hand, US markets were closed for Thanksgiving, with plans to resume trading for a half day on Friday, following a retreat in the S&P 500 and Nasdaq composite fueled by losses in technology sector heavyweights, including Nvidia, Microsoft, and Broadcom.
The latest economic indicators point to a mixed consumer sentiment as retail companies like Nordstrom experienced a drop in sales while Urban Outfitters exceeded financial forecasts. Concerns around inflation persist as consumer prices rise, with the Federal Reserve closely monitoring inflation rates as they approach the central bank's target. In terms of future interest rate adjustments, market speculations point towards a potential cut in rates amid uncertainties surrounding US trade policies under the incoming administration of President-elect Donald Trump.