Dec 12, (V7N) - Asian equities showed mixed movements Thursday, following another record day on Wall Street fueled by inflation data that bolstered expectations for a U.S. interest rate cut next week. The hopes for rate cuts came after U.S. inflation data for November showed the consumer price index rose in line with expectations, leading swaps markets to price in a 98% chance of a rate reduction by the Federal Reserve.

Seoul's Kospi index rose for a third consecutive day, recovering from a sell-off that followed South Korean President Yoon Suk Yeol's brief martial law declaration. Meanwhile, Tokyo’s Nikkei 225 gained over 1% amid a weaker yen, and other regional markets such as Hong Kong and Shanghai also saw slight increases. In contrast, markets in Sydney, Wellington, Manila, and Jakarta experienced losses.

In China, investors are hopeful for more fiscal and monetary support to stimulate the economy, which is struggling with weak consumer spending and a persistent property crisis. However, skepticism remains about the effectiveness of these measures, particularly as the government has yet to implement direct financial interventions. Meanwhile, economic officials from the U.S. and China are set to meet for talks in a final push to strengthen ties before President-elect Donald Trump assumes office.

The euro remained under pressure ahead of a potential rate cut by the European Central Bank, while political uncertainty in France continued to weigh on the currency.

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