Markets Rebound in Asia as Central Banks Prepare for Next Move
As the world welcomed the new year, Asian markets saw a mixed bag of performances on Thursday. South Korea’s Kospi index surged 0.34%, while the Kosdaq rose 1.23%, following a delayed opening due to a New Year’s ceremony. The country’s central bank governor, Rhee Chang-yong, hinted at a flexible monetary policy approach amidst rising economic uncertainties.
Central Banks Take Center Stage
The Bank of Korea, which has implemented back-to-back rate cuts for the first time since 2009, is set to announce its next interest rate decision later this month. Meanwhile, markets in Japan remained closed on Thursday and Friday, awaiting the resumption of trading.
Economic Data Takes Center Stage
Singapore’s gross domestic product data revealed a 4.3% year-on-year expansion in the fourth quarter of 2024, slower than the previous quarter’s 5.4% growth. The advance GDP estimates are subject to revision as more data becomes available. The annual economic growth in 2024 accelerated to 4%, compared to 1.1% in 2023, according to official data.
China’s Manufacturing Sector in Focus
The Caixin/S&P Global manufacturing purchasing managers’ index for December is expected to come in at 51.7, slightly higher than November’s 51.5. This private survey follows the official PMI, which missed expectations at 50.1.
U.S. Markets Gear Up for a Fresh Year
U.S. stock futures remained steady as traders prepared for a new year, following double-digit annual gains in 2024. The S&P 500 recorded an annual gain of over 20% for the second consecutive year, jumping 23.31% last year. The Dow Jones Industrial Average gained 12.88%, while the Nasdaq surged 28.64%.
Global Markets Look Ahead
As markets navigate the complexities of 2025, central banks, economic data, and manufacturing activity will continue to shape the global financial landscape. With interest rate decisions, GDP growth, and PMI data on the horizon, investors will be closely watching for signs of economic resilience and potential headwinds.
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