Asian stock markets recorded impressive gains for the second consecutive trading session on Thursday, riding the wave of a global market rally fueled by growing investor confidence that the US Federal Reserve will implement another interest rate reduction next month.
Global Rally Extends to Asian Trading Floors
The renewed optimism among international investors has temporarily overshadowed concerns about stretched market valuations, allowing risk appetite to strengthen significantly across global trading platforms. This positive sentiment has lifted not only traditional equities but also riskier assets including cryptocurrencies like bitcoin.
Market expectations for monetary policy easing have been substantially reinforced by dovish commentary from multiple Federal Reserve officials and a series of weaker-than-anticipated US employment reports. According to Bloomberg data, markets are currently pricing in approximately an 80% probability of a rate cut on December 10, along with three additional reductions anticipated throughout 2025.
Economic Indicators and Market Response
The Federal Reserve's latest Beige Book report highlighted an emerging divergence in American consumer behavior patterns. The document noted that overall consumer spending has declined further, while higher-end retail expenditure has demonstrated surprising resilience. The report specifically mentioned that some retailers experienced negative impacts from the record-long government shutdown.
Interestingly, traders showed minimal reaction to fresh economic data revealing that jobless claims unexpectedly decreased, contrary to analyst forecasts predicting an increase. All three major US indices closed higher for the fourth straight day on Wednesday, with Wall Street remaining closed on Thursday for Thanksgiving celebrations.
Asian markets mirrored the positive performance of their US counterparts with substantial advances across major financial centers. Significant gains were recorded in Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Seoul, Taipei, and Jakarta, while Wellington and Manila displayed comparatively weaker performance.
Broader Market Context and Corporate Developments
This market upswing arrives after stocks experienced declines earlier in the month amid concerns that the technology-driven surge of recent years had created overheated market conditions and that returns from substantial artificial intelligence investments would require more time to materialize.
Currently, these apprehensions have been temporarily overshadowed by the prospect of lower borrowing costs, which are perceived as providing stronger support for a wider range of companies, particularly smaller capitalization firms.
In cryptocurrency markets, bitcoin climbed back above the $90,000 threshold as risk appetite improved across financial markets. The digital currency had previously slumped to a seven-month low slightly above $80,000 during recent market turbulence. Despite the recovery, bitcoin remains considerably below its record high exceeding $126,200 reached in early October.
In corporate developments, shares of Japanese beverage giant Asahi experienced declines after the company announced it would delay the release of its financial results due to a cybersecurity incident that began in late September. The maker of Asahi Super Dry reported system problems commencing September 29 that disrupted its order reception and product shipment capabilities. Company officials confirmed the operational disruption resulted from a ransomware attack.
