Asian stock markets delivered a mixed performance on Wednesday. Japan and South Korea led regional gains, while most other markets traded subdued. Investors weighed stronger expectations of a potential U.S. Federal Reserve rate cut next week.
Australian shares were mostly flat. The country reported its fastest annual economic growth in two years during the third quarter, but quarterly growth came in weaker than forecast.
On Wall Street, major indexes closed slightly higher overnight. Tech stocks led the advance, and U.S. futures also edged up during Asian trading.
Japan and South Korea rise alongside Wall Street
Japan’s Nikkei 225 climbed 1.6%, and South Korea’s KOSPI added 1.3%.
Investor confidence improved as rate-cut bets for December increased sharply. Markets now assign more than an 85% probability to a 25-basis-point Fed cut, according to the CME FedWatch Tool. This is a significant jump from below 40% just a week earlier.
Still, traders remain cautious. Fed officials have delivered mixed messages, leaving uncertainty about when and how aggressively the central bank may ease policy.
Investors are now focused on upcoming U.S. data, including the ADP employment report and the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation measure.
In other Asian markets, Singapore’s Straits Times Index edged 0.3% higher, while India’s Nifty 50 slipped 0.4%.
Australia Q3 GDP up 2.1% year-on-year
In China, the Shanghai Shenzhen CSI 300 and the Shanghai Composite traded mostly flat. Hong Kong’s Hang Seng fell more than 1%.
Shares declined after a private survey showed slower growth in China’s services sector. The services PMI dropped to 52.1 in November from 52.6, reflecting weaker new orders and continued job losses, despite a slight improvement in export demand.
Australia’s S&P/ASX 200 also traded flat. Third-quarter GDP grew 0.4% quarter-on-quarter, missing expectations of 0.7%. However, annual growth reached 2.1%, the strongest in two years.
Weaker quarterly results were pulled down by inventory reductions, while consumer spending and business investment remained steady. The mixed data added to uncertainty surrounding potential near-term easing by the Reserve Bank of Australia.
