Asian equity markets delivered a mixed performance on Wednesday, with Japan and South Korea outperforming regional peers as expectations of an imminent U.S. rate cut gained momentum. Elsewhere, markets traded more cautiously amid uneven economic data and lingering geopolitical concerns.
Japan’s Nikkei 225 surged 1.6%, while South Korea’s KOSPI advanced 1.3%, mirroring Wall Street’s tech-led rally overnight. Markets are now pricing in more than an 85% probability that the Federal Reserve will cut rates by 25 basis points in December, a sharp increase from a week earlier. However, mixed signals from Fed officials continue to cloud the outlook, prompting investors to await key U.S. indicators, including the ADP employment report and the PCE inflation data, for clearer direction.
In Australia, the ASX 200 finished little changed. Latest figures showed that economic growth slowed to 0.4% quarter-on-quarter in Q3, below forecasts, while annual growth picked up to a two-year high of 2.1%, presenting a mixed picture of the country’s economic health.
Mainland Chinese markets were largely flat, with the CSI 300 and Shanghai Composite showing limited movement. Hong Kong’s Hang Seng Index fell more than 1% as signs of weaker activity in the services sector weighed on sentiment. Meanwhile, Singapore’s Straits Times Index edged higher, while India’s Nifty 50 slipped 0.4%.