Asia stocks weighed by South Korea; busy week for central banks

Wayne Cole - Reuters - 09/12

Asian shares were dragged by a slide in South Korea on Monday ahead of a packed week of central bank meetings that should see borrowing costs take a step lower, while U.S. inflation data are the last hurdle to a further policy easing there.

Summary

Asian stock markets :
South Korea stocks slide, Wall St futures flat
Little market reaction to Syria, oil fraction firmer
ECB, SNB and BoC all seen cutting rates this week

SYDNEY, Dec 9 (Reuters) - Asian shares were dragged by a slide in South Korea on Monday ahead of a packed week of central bank meetings that should see borrowing costs take a step lower, while U.S. inflation data are the last hurdle to a further policy easing there.

Political tumult in France and South Korea was joined by the fall of Syrian President Bashar al-Assad's regime, which complicated an already fraught situation in the Middle East.

Still, the mood was generally upbeat after U.S. November payrolls showed enough of a recovery to assuage concerns of a slowdown, but not so much as to forestall a rate cut from the Federal Reserve next week.

"Incoming data support our call for global growth lift into year-end, despite a slipping Euro area and building political stress," said Bruce Kasman, head of economic research at JPMorgan.

"We expect policy rates in Canada, Euro area, and Sweden to drop to 2% or lower over the coming year, while US and UK rates settle close to 4%," he added. "This month's meetings should point in this direction."

Futures imply an 85% chance on a quarter-point easing at the Fed's Dec. 17-18 meeting, up from 68% ahead of the jobs figures, and have a further three cuts priced in for next year.

That outlook combined with the bull run in tech stocks to boost the Nasdaq market by over $1 trillion in value last week alone. On Monday, S&P 500 futures and Nasdaq futures were both little changed.

MSCI's ...
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Source and Copyright images and texts: Wayne Cole - Reuters
Original link, read full article here: https://www.reuters.com/markets/global-markets-wrapup-1-2024-12-09/
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