Asian stocks rose after the increase in U.S. stocks

• Asian markets reacted to the rise of American stocks.
• Expectations for lower Fed interest rates supported the bond market.
• The technology sector noted a drop in SoftBank shares.

BANKING — Asian stocks predominantly rose in the week following the increase of U.S. stocks, as bond markets in the U.S. surged on the expectation that the Federal Reserve would lower interest rates to the lowest levels in a long time.

Futures on U.S. stocks declined, and oil prices also fell.

The Tokyo index Nikkei 225 practically remained unchanged, closing at 48,628.85, after the resumption of trading following the holidays.

The decline in shares of technology giant SoftBank by 10.3% due to news regarding investment in OpenAI impacted the market.

In South Korea, the Kospi index rose by 0.3% to 3,859.12. The Taiwanese Taiex increased by 1.5%.

Chinese markets also showed positive results. In Hong Kong, the Hang Seng index rose by 0.4% to 25,821.47, while the Shanghai composite index gained 0.9% to 3,872.45.

The electronic commerce company Alibaba, which is expected to report profits, increased by 1.6% in the week.

The Australian index S&P/ASX rose by 0.1% to 8,537.00.

U.S. bond markets will close on Thursday in observance of Thanksgiving. On the next day, activity will begin on "Black Friday" and "Cyber Monday."

The U.S. bond market rose on Monday, starting the week with the shortest trading time since the holiday.

The S&P 500 index rose by 1.5% to 6,705.12, which became one of the best days since summer. The Dow Jones index increased by 0.4% to 46,448.27, while Nasdaq rose by 2.7% to 22,872.01.

Shares received support thanks to growing expectations that the Fed would lower the key interest rate at the next meeting in December, which could boost the economy and investment prices.

The market also benefited from the strength of shares related to artificial intelligence. The company Alphabet, which received praise for its new model Gemini AI, rose by 6.3%.

Despite all the recent concerns, the S&P 500 index remains within 2.7% of its record set last month.

This week, the market is checking the number of important tests, one of which will take place in the week when the U.S. government publishes data on inflation at the consumer level for November.

Economists expect prices to rise by 2.6% compared to last year, just like in September. Higher than expected, the indicator may push the Fed to lower the key interest rate in December this year.

Traders predict an 85% probability that the Fed will lower rates in the upcoming month, which is an increase from 71% on Friday.

In other trades in the week, American benchmark oil fell by 25 cents to $58.59 per barrel. Brent crude dropped by 30 cents to $62.42 per barrel.

The dollar fell to 156.70 Japanese yen from 156.91 yen. The euro decreased to $1.1517 from $1.1521.

Bitcoin fell by 1.1% to $88,100, which was about $125,000 last month.

Tags: Economy