Asia report: Most markets rise as Bank of Korea holds rates

(Sharecast News) - Asia-Pacific equity markets were mostly higher on Thursday, tracking a tech-led rebound on Wall Street, where major US benchmarks logged a fourth consecutive day of gains. Hopes for a Federal Reserve interest rate cut in December continued to bolster sentiment, with futures markets pricing in an 85% probability of a quarter-point move, up from 30% a week ago, according to the CME FedWatch tool.

Patrick Munnelly at TickMill said global stocks were "close to recouping their losses from November as increasing expectations for interest rate cuts by the Federal Reserve revitalised the market after a downturn due to fears of inflated AI valuations," adding that "the activity across different asset classes reflects a careful optimism in global markets after tech valuation concerns negatively impacted stocks earlier this month."

Tokyo leads the gainers as Bank of Korea holds rates

Japan led regional advances.

The Nikkei 225 climbed 1.23% to 50,167.10, supported by strong gains in Resonac Holdings, Toppan Holdings and Denka, which rose 8.85%, 7.32% and 6.1%, respectively.

The broader Topix added 0.39% to 3,368.57.

The upbeat session followed the overnight jump in US tech shares, which helped lift risk appetite across Asian markets.

Munnelly noted that "Japan's Nikkei and South Korea's Kospi recorded increases of over 1%," reflecting renewed appetite for risk assets as investors became increasingly convinced that the Federal Reserve could shift to a more dovish stance.

China delivered a mixed performance.

The Shanghai Composite edged up 0.29% to 3,875.26 as Beijing Tianyishangjia New Material surged 20.04%, Maoye Commercial gained 10.04% and Cybrid Technologies added 10.02%.

However, the Shenzhen Component slipped 0.25% to 12,875.20 after government figures showed industrial profits fell 5.5% year on year in October.

Profits rose 1.9% over the first 10 months of the year, slowing from a 3.2% increase in the January to September period.

Munnelly said "China's focus turned to the property sector following a proposal to delay payments on local bonds, which led some financial instruments to drop to historic lows," underscoring ongoing strains in the domestic credit system even as equities stabilised.

Hong Kong's Hang Seng Index inched 0.07% higher to 25,945.93.

Pop Mart International Group rallied 6.84% after Beijing announced new measures to stimulate consumer spending, a move that briefly sent the Labubu toymaker's shares up as much as 10%.

Sands China rose 3.4% amid an executive reshuffle, while Zhongsheng Group Holdings advanced 2.5%.

South Korea's Kospi gained 0.66% to 3,986.91, led by outsized moves in Chunil Express and Century Company, which each jumped nearly 30%, and Korea Zinc, which rose 14.22%.

The Bank of Korea held its benchmark rate at 2.5% for a fourth straight meeting, as policymakers weighed currency weakness and persistently hot property markets.

Munnelly observed that "the US markets are closed on Thursday for Thanksgiving and will have a brief trading session on Friday; Wall Street is on track to break a three-week losing trend," helping anchor broader Asia-Pacific sentiment as trading volumes tapered.

Australian equities manage gains, New Zealand in the red

Turning down under, Australia's S&P/ASX 200 added 0.13% to 8,617.30.

GQG Partners rose 8.98%, while logistics software firm Wisetech Global surged 6.85% after appointing Raelene Murphy as an additional independent non-executive director.

Vault Minerals gained 6.54%.

New Zealand was the regional outlier, with the S&P/NZX 50 falling 0.96% to 13,432.20.

Pacific Edge dropped 5.88% following the appointment of James Vaughn as chief commercial officer, while Eroad fell 5.06% and Scales Corporation slipped 3.31%.

Domestic data painted a brighter economic picture, as the ANZ Business Confidence index climbed to 67.1 in November, its highest level in 11 years, and retail sales rose 1.9% quarter on quarter, the biggest jump since late 2021.

Munnelly cautioned that while global sentiment has improved, "uncertainty looms large," noting that markets are still sensitive to the outlook for rates, growth and consumption trends across major economies.

Dollar eases against regional peers, oil prices steady

In currency markets, the dollar eased slightly, with the greenback trading at JPY 156.28, AUD 1.5326 and NZD 1.7513.

Oil prices were steady, with Brent crude futures last up 0.11% on ICE at $63.20 per barrel, and the NYMEX quote for West Texas Intermediate rising 0.34% to $58.85.

Munnelly said that "in the commodities market, oil prices decreased as investors monitored US-led attempts to address the violence in Ukraine and awaited an OPEC+ meeting scheduled for this weekend," though crude benchmarks traded in a narrow range in Asian hours.

Reporting by Josh White for Sharecast.com.