Asian equities rose Friday, following a record-setting session on Wall Street in the wake of the Federal Reserve’s latest interest rate cut. Gains were recorded across Tokyo, Hong Kong, Sydney, Singapore, and Seoul, while Wellington, Taipei, and Manila also advanced. Shanghai and Jakarta, however, slipped amid mixed investor sentiment, reports AFP.
The rally came despite renewed concerns over tech sector valuations after disappointing earnings from giants Oracle and Broadcom. Investors are weighing the long-term impact of the massive sums poured into artificial intelligence, with warnings that the surge in spending may be overextended and that returns could take time to materialize. Broadcom’s quarterly results and cautious AI sales outlook sent its shares down more than four percent in after-hours trading, while Oracle shares fell 10.8 percent following its own revenue miss and elevated data center spending.
Market attention remains focused on upcoming U.S. jobs data, which could shed light on the central bank’s policy direction for next year. Figures released Thursday showed initial jobless claims increased by the largest margin in five and a half years for the week ended December 6, reinforcing expectations of a softening labor market.
Traders welcomed Fed Chair Jerome Powell’s post-meeting comments on Wednesday, which were seen as less hawkish than feared, though the policy statement indicated that a fourth consecutive cut in January might be postponed. Analysts also noted that the unusual dissent of three Fed decision-makers added complexity to the policy outlook. Nonetheless, optimism prevailed on Wall Street, with the Dow and S&P 500 hitting fresh record highs, fueled by expectations of additional rate cuts in 2026.
Neil Wilson of Saxo Markets noted that investors are optimistic because a new Fed chair, combined with a cooling labor market and only one cut penciled in for next year, suggests that further easing could be on the horizon. Despite lingering worries about an AI-driven tech rally, which has propelled firms like Nvidia to record valuations, markets broadly focused on the positive signals from monetary policy and economic trends.
At market close, the Nikkei 225 in Tokyo rose 0.9 percent to 50,610.04, and the Hang Seng Index in Hong Kong gained 1.1 percent to 25,799.01, while the Shanghai Composite declined 0.5 percent to 3,854.15. In currency and commodities trading, the dollar strengthened against the yen to 155.73, the euro fell to $1.1734, and the pound traded at $1.3391. Oil prices rose, with West Texas Intermediate at $58.02 per barrel and Brent crude at $61.69 per barrel. The Dow closed at 48,704.01, up 1.3 percent, and London’s FTSE 100 gained 0.5 percent to 9,703.16.
Bd-pratidin English/ Jisan
