Asian equity markets exhibited divergent trends on Tuesday as regional investors navigated a holiday-shortened trading week while monitoring currency movements and economic indicators. The trading session unfolded against a backdrop of Wall Street gains and heightened anticipation for key U.S. economic data releases.
Japanese markets experienced notable pressure as the Nikkei 225 dipped 0.1% to 50,359.78, coinciding with the yen’s strengthening against the dollar. This currency movement followed explicit warnings from Tokyo officials regarding potential intervention should the yen exhibit excessive weakness. The dollar-yen exchange rate settled at 156.03, down significantly from Monday’s 157.04 level, while the euro strengthened to $1.1777.
Regional performance varied considerably across Asian bourses. Australia’s S&P/ASX 200 outperformed with a robust 1.1% surge to 8,795.70, while South Korea’s Kospi gained 0.3% to reach 4,117.15. China’s Shanghai Composite edged marginally higher by 0.1% to 3,920.16, though Hong Kong’s Hang Seng relinquished early advances to close 0.1% lower at 25,762.64. Taiwan’s Taiex posted a respectable 0.6% advance, while India’s Sensex remained essentially flat.
The commodity sector witnessed significant movements as gold prices climbed nearly 1% to unprecedented levels, reaching $4,512.40 amid expectations of forthcoming Federal Reserve rate reductions. Silver similarly achieved record territory with a 1.2% increase. Conversely, oil prices retreated slightly early Tuesday after previous session gains, with U.S. benchmark crude declining 23 cents to $57.78 per barrel and Brent crude falling 22 cents to $61.85.
Market participants awaited crucial U.S. economic reports scheduled for release during the abbreviated trading week, including third-quarter GDP estimates, weekly jobless claims data, and December consumer confidence figures. These indicators are expected to provide further insight into the American economic trajectory amid concerns about persistent inflation, moderating employment conditions, and weakened retail sales.
Corporate developments included substantial gains for ride-sharing companies Uber and Lyft, both advancing over 2.5% following announcements regarding planned robotaxi services in London. Media sector activity intensified as Paramount Skydance elevated its takeover bid for Warner Bros. Discovery with substantial financial backing from Oracle founder Larry Ellison, resulting in a 4.3% share price increase.