Investing.com– Most Asian stocks rose on Wednesday following overnight gains on Wall Street, but gains were limited as investors remained cautious ahead of key U.S. inflation data, especially in light of the Federal Reserve’s dovish stance in December.
U.S. stock index futures rose in Asian trade on Wednesday. Market participants were focused on a key inflation reading to gauge the Fed’s interest rate outlook for 2025 later in the day.
The Fed signaled fewer rate cuts in 2025 during its December meeting, citing sticky inflation.
Asian stocks are marginally ahead of the US CPI
Traders are cautious ahead of the upcoming US trade, resulting in marginal moves across the region.
The Japanese index rose 0.3%, while it gained 0.6% on Wednesday.
Australian was largely unchanged. Investors await December on Thursday.
China’s index fell 0.2 percent, with the index largely unchanged, while Hong Kong’s index rose 0.1 percent.
The focus this week will be on several key economic indicators that will provide insight into China’s economic performance at the end of 2024. Figures for the full year 2024 are due to be released on Friday. Additionally, December data and figures are also expected on Friday.
Elsewhere in Asia, stock indexes fell, with Thailand down more than 1%. Singapore fell 0.3%, while Malaysia’s index fell 0.7%.
Indies were slightly lower on Wednesday.
Asian stocks face additional downward pressure from the prospect of a smaller Fed rate cut in 2025. Markets now expect just one rate cut this year, a sharp adjustment from earlier expectations of four cuts ahead of the Fed’s December meeting, according to .
South Korean President Yoon arrested due to state of emergency
Impeached South Korean President Yoon Suk Yeol was arrested on Wednesday in a failed attempt to implement martial law at the end of 2024, according to local media reports.
The index rose by 0.3 percent.
The Bank of Korea is expected to cut its currency by 25 basis points on Thursday, advancing the move by a month, to support South Korea’s struggling economy amid heightened political uncertainty, according to a Reuters poll.
