Shares were mixed across Asia on Thursday following a retreat in U.S. stock markets, which were weighed down by losses in technology stocks.
In Japan, the Nikkei 225 index rose 0.7%, reaching 38,400.00, while Australia’s S&P/ASX 200 climbed 0.8% to 8,473.30. South Korea’s Kospi remained unchanged at 2,503.01 after the Bank of Korea reduced its key interest rate to 3% to help the economy. This move also saw the central bank revise its growth forecast for the year down to 2.2%, from 2.4%, and for 2025, down to 1.9%, from 2.1%.
In China, markets experienced losses as investors sold stocks to secure profits from recent gains. The Hang Seng index in Hong Kong dropped 1.3% to 19,344.07, and the Shanghai Composite index fell by 0.3% to 3,299.87.
U.S. markets were closed for Thanksgiving, and will reopen for a half day on Friday. On Wednesday, the S&P 500 ended down 0.4% at 5,998.74, breaking a seven-day winning streak. The Dow Jones Industrial Average declined 0.3% to 44,722.06, ending a five-day rally. Both the Dow and S&P 500 are still near all-time highs. The Nasdaq, heavily influenced by tech stocks, lost 0.6%, closing at 19,060.48.
Technology giants such as Nvidia, Microsoft, and Broadcom were major contributors to the market’s decline. Nvidia, with its significant market weight, fell 1.2%, while Microsoft dropped 1.2% and Broadcom fell 3.1%. Additionally, several personal computer companies saw significant losses following disappointing earnings. HP saw its shares plunge 11.4% after issuing a weaker-than-expected earnings forecast, while Dell slid 12.2% after its quarterly revenue came in below Wall Street expectations.
However, financial and healthcare stocks helped to cushion the losses. Berkshire Hathaway gained 0.9%, and Merck & Co. rose by 1.5%.
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Economic data from the U.S. showed the economy grew at a solid annual rate of 2.8% in the third quarter, driven by strong consumer spending and a surge in exports. However, some retailers reported mixed earnings, with Nordstrom falling 8.1% after warning of weakening sales, while Urban Outfitters surged 18.3% after exceeding analysts’ forecasts.
Inflation remains a concern for consumers, with the personal consumption expenditures (PCE) index rising to 2.3% in October, up from 2.1% in September. This follows a broader decline in inflation since its peak in 2022. The Federal Reserve’s preferred measure of inflation, PCE, had reached nearly 7.3% in June 2022. Despite a decrease in inflation, the latest data signals that the decline might be stalling as it nears the Fed’s 2% target. The Fed had raised interest rates starting in 2022 to combat inflation, and after reaching a peak in mid-2023, it has started cutting rates again.
Looking ahead, Wall Street anticipates a quarter-point rate cut in December, though concerns are growing over potential new tariffs under President-elect Donald Trump’s administration, which could affect inflation and lead to changes in the Fed’s future decisions.
In early Thursday trading, U.S. crude oil prices dropped 15 cents to $68.57 per barrel, while Brent crude fell by 15 cents to $72.15. The dollar rose slightly to 151.56 Japanese yen, up from 151.12 yen, and the euro slipped to $1.0555 from $1.0567.