Markets Kick Off Holiday Week on a High Note
As the holiday season gets underway, Asian markets are off to a strong start, buoyed by news that a U.S. government shutdown has been averted. Investors are now turning their attention to a potential merger between Japanese automakers Honda Motor and Nissan Motor, with an official announcement expected as early as Monday.
Japanese Markets Lead the Charge
The Nikkei 225 index in Japan surged 0.68%, while the Topix index rose 0.51%. South Korea’s Kospi also saw gains, climbing 0.72%, and the small-cap Kosdaq index jumped 0.96%. In Australia, the S&P/ASX 200 started the day up 0.71%.
Hong Kong Futures Point to Strong Open
Futures for Hong Kong’s Hang Seng index are indicating a stronger open, with the index set to rise above its previous close of 19,720.7.
U.S. Markets End Week on a High
Last Friday, all three major U.S. indexes closed higher, driven by cooler-than-expected inflation data. The Dow Jones Industrial Average gained 1.18%, while the S&P 500 added 1.09% and the Nasdaq Composite advanced 1.03%.
Inflation Data Eases Concerns
The personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, accelerated to 2.4% in November, but remained below expectations of 2.5%. Excluding food and energy, core PCE rose 2.8% from a year ago, slightly below expectations of 2.9%.
What’s Next?
As the week unfolds, investors will be keeping a close eye on any developments related to the potential Honda-Nissan merger, as well as any other market-moving news. With the holiday season in full swing, trading volumes are expected to be lighter than usual, but market participants will still be watching for any signs of direction.
Leave a Reply