What's Affecting Markets Today
Asia-Pacific markets traded mixed Thursday as U.S. CPI data reinforced expectations for a December Fed rate cut. The October CPI matched forecasts, with annual inflation at 2.6% and core CPI at 3.3%, meeting expectations.
Japan’s Nikkei 225 edged up 0.1%, with the Topix gaining 0.46%. The yen strengthened slightly to 155.36 per U.S. dollar, remaining near a four-month low after dipping below 155 overnight.
South Korea’s Kospi rose 0.28% and the Kosdaq 0.42%, with markets opening an hour late for national college entrance exams.
Hong Kong’s Hang Seng index declined 0.69% amid continued volatility, extending a week-long downturn that has seen it lose 4% by Wednesday. The index traded despite a Typhoon warning, marking the first instance under new rules allowing trading during severe weather.
In China, the CSI 300 slipped 0.27%, extending recent losses.
Investors in the region continue to weigh local factors against U.S. rate expectations, as volatile conditions persist across Asian indices.
ASX Stocks
ASX 200 - 8,223.1 (+0.4%)
Key Highlights:
A rally in technology and major banks lifted the Australian sharemarket, with the S&P/ASX 200 Index rising 0.2% (14.1 points) to 8207.5. Gains in six of eleven sectors were led by a 5.9% surge in Xero, which reported a 51% rise in EBITDA to $311.7 million and a 76% increase in net profit to $95 million for the half-year. Major banks were all in the green, with Commonwealth Bank up 1.3%.
Iron ore futures dropped 1.2% to $US99.40, impacting Fortescue Metals (-1.4%) and BHP (-0.9%).
Employment data showed 15,900 new jobs in October, falling short of expectations. The unemployment rate remained at 4.1%, underscoring a tight labor market. RBA Governor Michele Bullock warned of a possible rate hike amid labor market strength, contrasting with expected rate cuts in other economies.
In focus, Orica fell 1.7% despite 15% earnings growth, Nufarm rose 7%, GrainCorp slid 3.6%, and Cleanaway gained 3.5% amid ACCC scrutiny of its Citywide acquisition.
Leaders
MSB Mesoblast Ltd (+17.71%)
NXL NUIX Ltd (+9.32%)
NUF Nufarm Ltd (+6.56%)
XRO Xero Ltd (+6.15%)
NEU Neuren Pharmaceuticals Ltd (+5.44%)
Laggards
RSG Resolute Mining Ltd (-6.40%)
OPT Opthea Ltd (-5.26%)
CSC Capstone Copper Corp (-5.21%)
WAF West African Resources Ltd (-5.20%)
OBM Ora Banda Mining Ltd (-4.46%)
