Asian stocks edged lower on Tuesday in thin, end-of-year trading as investors tempered expectations for US rate cuts in 2025 and awaited the incoming Trump administration’s policies.
MSCI’s Asia-Pacific index, excluding Japan, dipped 0.2 per cent but remained on track for an 8 per cent annual gain. Hong Kong’s Hang Seng rose 0.3 per cent, while China’s CSI300 index was flat after data showed slower manufacturing growth in December.
The dollar held strong near two-year highs, with the dollar index set for a 6.5 per cent annual gain, supported by elevated US Treasury yields. Meanwhile, the yen weakened over 10 per cent this year, marking its fourth consecutive annual decline.
On Wall Street, US stocks faced broad sell-offs Monday due to tax positioning and valuation concerns but remained on course for double-digit annual gains, with the Nasdaq up nearly 30 per cent in 2024. European futures signalled a weaker open, with key indices down 0.6-0.7 per cent.
In commodities, Brent crude fell 3.2 per cent in 2024 amid demand concerns, while gold surged over 26 per cent for its best year in a decade, fuelled by geopolitical tensions and safe-haven demand.
Attribution: Reuters
Subediting: Y.Yasser