Asia-Pacific markets presented a mixed picture on Tuesday, with investor sentiment buoyed overnight by China’s announcement looser monetary policy for 2024, ahead of the Reserve Bank of Australia's interest rate decision due later in the session.
By 12 pm AEDT (1 am GMT) the ASX 200 lost 0.4%, the Kospi 200 added 1.9% and Nikkei 225 gained 0.3%.
Investor sentiment was bolstered across the Asian-Pacfic following China’s pledge of “more proactive” fiscal measures and a “moderately loose” monetary policy for 2024.
Meanwhile, the Reserve Bank of Australia is set to deliver its interest rate decision later in the day. Policymakers are widely expected to maintain the benchmark rate at 4.35%.
On Wall Street, U.S. markets ended lower on Monday, with the S&P 500 and Nasdaq Composite both declining by 0.6%, and the Dow Jones Industrial Average losing 0.5%.
Technology stocks faced selling pressure, highlighted by a 2.6% drop in Nvidia’s shares following news of a Chinese antitrust investigation. Other tech giants, including Meta Platforms, Amazon, and Netflix, also struggled.
Bitcoin retreated after recently surpassing the US$100,000 mark, reflecting waning risk appetite among investors.
Investors now await the U.S. consumer price index (CPI) report, scheduled for release on Wednesday (Thursday AEDT), which could influence the Federal Reserve’s interest rate decision at its meeting later this month.
Economists expect headline inflation to have risen by 0.2% in November and 2.7% year-on-year, potentially shaping monetary policy decisions in the coming weeks.
In the commodity markets, Brent crude rose 1.1% to $71.90 per barrel, supported by renewed optimism in demand, while gold prices were steady at $2,660.30.
The Shanghai Composite Index dipped 0.1% to 3,402.5, while the CSI 300 slipped 0.2% to 3,966.6.
India shares slipped, with the BSE SENSEX down 0.2% to 81,508.5.
In Europe, stocks showed mixed performance as the FTSE 100 Index in the United Kingdom rose 0.5% to close at 8,352.1, while Germany's DAX slipped 0.2% to 20,346.0, and France's CAC 40 advanced 0.7% to 7,480.1.
