Asian Stocks Rise, Bitcoin Trades Above $90,000: Markets Wrap

Asian shares followed Wall Street higher as a global equities rally extended, fueled by rising expectations for Federal Reserve interest-rate cuts.

Gauges in Japan, South Korea and Australia all edged higher at the open, while futures contracts for Hong Kong looked flat. That came after the S&P 500 Index advanced 0.7% and the tech-heavy Nasdaq 100 added 0.9% ahead of the Thanksgiving break.

The gains tracked firming expectations for an easing by the Fed, with money markets pricing in a roughly 80% chance of a quarter-point rate cut next month and three more by the end of 2026. A week ago, traders expected only three cuts in total.

A four-day rally in Treasuries stalled on Wednesday, with the 10-year yield at 4%, as fresh US labor market data came in stronger than expected. An index of the dollar extended its losses to a third day, while gold advanced. As sentiment improved, Bitcoin climbed above $90,000 for the first time in almost a week, clawing back ground after a month-long selloff.

The cross-asset moves signal cautious optimism across global markets after concerns around tech valuations hammered US stocks earlier in the month. Sentiment has since improved as dovish remarks by Fed officials revived bets that the central bank will lower borrowing costs at its meeting next month.

“The uncertainty surrounding the event is subsiding,” Kyle Rodda, a senior analyst at Capital.com, wrote in a note to clients.

The release of the US central bank’s Beige Book showed US employment declined slightly and prices rose moderately, according to the survey of regional business contacts. Spending declined further, except among higher-end shoppers. Also, initial jobless claims fell slightly, defying expectations for a modest increase. 

The US data “reinforced the notion that there are crosscurrents and mixed performance in the real economy,” said Ian Lyngen at BMO Capital Markets. There is nothing within the reports that will derail the Fed from cutting by 25 basis points on Dec. 10, he said.

What Bloomberg Economics says...

The most important message from the Federal Reserve’s latest Beige Book was that employment declined slightly, with nearly half of districts noting weaker demand for workers. That’s a significant downgrade since the previous report. We think the weak reading on the employment side of the Fed’s mandate will help tip the scales toward a 25-basis-point rate cut at the Dec. 9-10 FOMC meeting.

Expectations for a rate cut have strengthened after it emerged that White House National Economic Council Director Kevin Hassett is the leading contender for the next Fed chair — a choice investors see aligning with President Donald Trump’s push for lower rates.

In Japan, Prime Minister Sanae Takaichi’s government plans to issue more bonds to fund its economic package, according to people familiar with the matter. 

Elsewhere, China Vanke Co. proposed delaying repayment on a local bond for the first time, while Hong Kong property group New World Development Co. received additional bondholder support in its debt swap plan, a filing showed.

Earlier Wednesday, Chancellor of the Exchequer Rachel Reeves expanded her fiscal buffer to £22 billion ($29 billion) in her latest budget. She funded the increase with £29.8 billion in new taxes, including levies on gambling and prime real estate. 

The pound and gilts gained as she delivered her speech.

In the commodities market, oil edged lower as investors tracked US-led efforts to end the war in Ukraine, while looking ahead to an OPEC+ gathering this weekend. 

Some of the main moves in markets:

Stocks

• S&P 500 futures were little changed as of 9:14 a.m. Tokyo time

• Hang Seng futures were little changed

• Japan’s Topix rose 0.7%

• Australia’s S&P/ASX 200 rose 0.4%

• Euro Stoxx 50 futures rose 1.4%

Currencies

• The Bloomberg Dollar Spot Index was little changed

• The euro was little changed at $1.1602

• The Japanese yen rose 0.2% to 156.14 per dollar

• The offshore yuan was little changed at 7.0664 per dollar

Cryptocurrencies

• Bitcoin was little changed at $90,208.76

• Ether fell 0.3% to $3,013.68

Bonds

• Japan’s 10-year yield was unchanged at 1.800%

• Australia’s 10-year yield declined six basis points to 4.47%

Commodities

• West Texas Intermediate crude fell 0.3% to $58.46 a barrel

• Spot gold was little changed