What's Affecting Markets Today
Asia-Pacific markets opened higher on Tuesday, mirroring gains on Wall Street, where the S&P 500 and Nasdaq Composite closed at record highs.
Australia’s S&P/ASX 200 climbed 0.71%, while Japan’s Nikkei 225 surged 1.6%, and the Topix rose 1.19%. South Korea’s Kospi advanced 1.64%, with the Kosdaq up 1.49%. In South Korea, November’s inflation rate edged higher to 1.5% year-on-year, exceeding October’s 1.3% but missing economists’ expectations of 1.7%, according to a Reuters poll. Meanwhile, Hong Kong’s Hang Seng Index gained marginally, up 0.011%.
Market participants are gearing up for a series of key economic releases and Federal Reserve commentary that could shape the trajectory of interest rates. Focus remains on the U.S. November payrolls report, scheduled for Friday, which will provide critical insights into labor market conditions ahead of the Fed’s Dec. 17-18 policy meeting. Fed funds futures currently suggest a 76% probability of a rate cut during the meeting, according to CME’s FedWatch Tool, keeping traders attentive to signals that may clarify the central bank’s policy direction.
ASX Stocks
ASX 200 - 8,501.9 (+0.60%)
Key Highlights:
The Australian sharemarket hit a record high for the third time in a week on Tuesday, with the S&P/ASX 200 rising 0.7% to close at 8505.1, marking a year-to-date gain of over 11%. Gains were broad-based, with 10 of 11 sectors advancing, led by health, while utilities lagged due to declines in AGL and Origin.
Consumer stocks were standouts. Metcash surged 6% to $3.38 after Citi upgraded the wholesaler to “buy,” citing a recovery in its hardware division. The four major banks also gained, with ANZ up 2% and NAB adding 0.9%. Miners saw mixed performance: BHP rose 0.3%, Rio Tinto gained 0.1%, and Fortescue advanced 2.7%, defying weaker iron ore prices.
Collins Foods slumped 3.7% after cutting FY25 guidance amid inflationary pressures. Woolworths dipped 0.3%, flagging a $50 million sales hit due to strike action. Zip fell 1.8% as co-founder Larry Diamond announced plans to focus on philanthropy. Steadfast Group rose 3% after an internal review found no compliance breaches. Incitec Pivot dropped 0.9% post-ex-dividend.
Leaders
MTS Metcash Ltd (+6.11%)
SQ2 Block Inc (+5.37%)
NXL NUIX Ltd (+5.10%)
MFG Magellan Financial (+4.67%)
OPT Opthea Ltd (+4.61%)
Laggards
ERA Energy Resources of Aus (-16.67%)
PGC Paragon Care Ltd (-4.04%)
CKF Collins Foods Ltd (-4.00%)
MAH Macmahon Holdings Ltd (-3.38%)
WEB WEB Travel Group Ltd (-3.37%)
