On Friday morning (3 January, 9:42 AM, GMT+7, Bangkok time), major indices in Asia Pacific increased with investors monitoring economic and political developments in the region, particularly from China and South Korea.
The People’s Bank of China (PBOC) is said to be considering a potential interest rate cut later this year, according to a report by the Financial Times, quoting statements from the central bank, with the current 7-day reverse repo rate standing at 1.5%.
Additionally, the Chinese Ministry of Commerce is intending to implement export controls on specific technologies crucial for battery component production and the processing of critical minerals such as lithium and gallium, as stated in an announcement released on Thursday.
Traders in Asia are also paying attention to the ongoing political instability in South Korea, as the country’s anti-corruption watchdog pursues an arrest warrant for ousted President Yoon Suk Yeol, as reported by local media outlet Yonhap News.
Meanwhile, markets in Japan remained closed for a holiday.
South Korea’s KOSPI jumped by 1.94% to 2,445.55, and Australia’s ASX 200 grew by 0.58% to 8,248.8.
As for stocks in China, Shanghai’s SSEC climbed by 0.06% to 3,264.36. Shenzhen’s SZI escalated by 0.38% to 10,126.2, and Hong Kong’s HSI added by 1.24% to 19,865.7.
Meanwhile, the US stock markets edged down on Thursday as the Dow Jones Industrial Average (DJIA) decreased by 0.36% to 42,392.27. NASDAQ lost 0.16% to 19,280.79, and S&P 500 dipped by 0.22% to 5,868.55. VIX surged by 3.34% to 17.93.
As for commodities, oil prices settled higher on Thursday as investors showed optimism towards China’s economic prospects and fuel demand following President Xi Jinping’s commitment to stimulating growth. Brent futures increased $1.29 or 1.7% to $75.93 a barrel, and the West Texas Intermediate (WTI) gained $1.41 or 2% to $73.13 per barrel.
This morning, Brent futures rose 19 cents or 0.25% to $76.12 a barrel, and the WTI expanded 22 cents or 0.3% to $73.35 per barrel.
Meanwhile, gold futures grew 0.24% to $2,675.3 per Troy ounce.
