What's Affecting Markets Today
Asian markets edged higher on Wednesday, tracking overnight gains on Wall Street, though caution prevailed ahead of key U.S. inflation data. The Federal Reserve’s December hawkish stance, signaling fewer rate cuts in 2025 due to persistent inflation, continued to weigh on sentiment.
Japan’s Nikkei 225 rose 0.3%, while the TOPIX gained 0.6%. China’s Shanghai Shenzhen CSI 300 fell 0.2%, and the Shanghai Composite was flat. Hong Kong’s Hang Seng edged up 0.1%. Focus remains on China’s economic indicators, with full-year 2024 GDP, industrial production, and retail sales data due Friday.
Elsewhere, Thailand’s SET Index dropped over 1%, Singapore’s Straits Times Index fell 0.3%, and Malaysia’s KLCI declined 0.7%. India’s Nifty 50 Futures traded slightly lower.
In South Korea, the KOSPI rose 0.3%. The Bank of Korea is expected to lower its base rate by 25 basis points on Thursday to support the economy amid political uncertainty following the arrest of impeached President Yoon Suk Yeol over a failed martial law attempt.
Markets anticipate only one U.S. rate cut in 2025, reflecting a shift in expectations.
ASX Stocks
ASX 200 - 8,218.5 (-0.2%)
Key Highlights:
The Australian sharemarket reversed earlier gains to close marginally lower on Wednesday, with the S&P/ASX 200 slipping 0.04% (3.5 points) to 8227.5. The All Ordinaries fell similarly, reflecting a subdued trading session as investors awaited key US inflation data.
Earlier strength in property stocks was offset by broader market weakness, with eight of the 11 sectors closing in the red. Stockland rose 2%, and Mirvac gained 1.5%, while industrial property developer Goodman Group slipped 0.8%.
Biotech CSL fell 1.1%, and Brambles declined 1.2%. Rate-sensitive tech stocks continued to struggle, with WiseTech down 3.1% and TechnologyOne falling 2%.
In focus, International Graphite surged 18.9%, and Pilbara rose 4.6% after receiving $19 million in government green energy loans. Arafura Rare Earths jumped 13% on a $200 million government grant. AVJennings gained 9.4% amid a $391 million takeover bid by Ho Bee Land. Baby Bunting soared 10.8% after reporting a 37% rise in pro forma net profit to $4.8 million.
Leaders
LTR Liontown Resources Ltd (+6.02%)
GYG Guzman Y Gomez Ltd (+5.53%)
BAP Bapcor Ltd (+4.40%)
IEL IDP Education Ltd (+4.34%)
PLS Pilbara Minerals Ltd (+4.32%)
Laggards
NEU Neuren Pharmaceuticals Ltd (-8.08%)
OPT Opthea Ltd (-4.06%)
WTC Wisetech Global Ltd (-3.41%)
JLG Johns LYNG Group Ltd (-3.34%)
QAN Qantas Airways Ltd (-3.13%)
