Asian Markets Show Varied Results, Following Wall Street’s Consistent Gains Amid Holiday Closures

by Ethan Kim
Asian stock markets

Monday saw a diverse performance in Asian stock markets after Wall Street completed its eighth consecutive week of gains. This outcome followed recent data indicating a downward trend in inflation and potential economic growth.

Japan’s Nikkei 225 experienced a modest rise of 0.2%, reaching 33,225.45, while Taiwan’s Taiex saw a slight increase of 0.1%. The SET index in Bangkok also climbed by 0.2%. In contrast, China’s Shanghai Composite Index witnessed a decline of 0.3%, falling to 2,905.79.

The majority of markets in Asia and other regions remained closed due to the Christmas holiday.

The S&P 500 in the United States edged up by 0.2% on Friday, approaching its record high from nearly two years ago, now standing at 4,754.63. Conversely, the Dow Jones Industrial Average experienced a marginal drop of less than 0.1%, closing at 37,385.97, while the Nasdaq Composite Index gained 0.2%, ending at 14,992.97.

The S&P 500 is currently enjoying its longest streak of weekly gains since 2017, marking eight consecutive weeks of advancement.

Investor attention on Wall Street was primarily on several economic reports released last Friday, which caused fluctuations in Treasury yields.

The Federal Reserve’s preferred inflation gauge showed a more significant slowdown than anticipated, dropping to 2.6% in November from 2.9% the previous month. This mirrors the trend seen in other inflation reports for November.

Unexpectedly, consumer spending in the U.S. increased during November. This is a positive sign for an economy predominantly driven by consumer expenditure, yet it may also suggest persistent inflationary pressures.

Additional reports from Friday indicated stronger-than-expected orders for durable goods in November, a surprising dip in new home sales, and an improvement in U.S. consumer sentiment.

The Federal Reserve faces a challenge in moderating economic growth through increased interest rates to curb inflation, without pushing the economy into a recession. A more robust economy than anticipated could make this balancing act more complex.

The yield on the 10-year Treasury note remained stable at 3.90% early Monday, consistent with its level from late Friday. This is a notable decrease from October’s peak of over 5%, which had exerted significant downward pressure on the stock market.

Decreasing yields have been instrumental in the stock market’s approximately 15% surge since late October. Lower yields not only stimulate the economy by promoting borrowing but also alleviate stress on the financial system and enhance investment values. The anticipation that the Federal Reserve might reduce interest rates through 2024 due to subsiding inflation has contributed to this easing.

Market traders predominantly anticipate that the Federal Reserve will lower its benchmark interest rate by at least 1.50 percentage points by the end of the upcoming year, as per data from the CME Group. The federal funds rate currently oscillates between 5.25% and 5.50%, its highest in over two decades.

In foreign exchange markets, the U.S. dollar weakened against the Japanese yen, dropping to 142.18 yen from 142.49 yen. The euro also declined slightly to $1.1007 from $1.1019.

Frequently Asked Questions (FAQs) about Asian stock markets

What was the performance of Asian stock markets on the Monday after Wall Street’s 8th consecutive winning week?

Asian stock markets showed mixed results on this Monday. The Nikkei 225 in Tokyo rose by 0.2%, Taiwan’s Taiex increased by 0.1%, and Bangkok’s SET index went up by 0.2%. However, the Shanghai Composite index in China fell by 0.3%.

How did Wall Street perform in the previous week and what was the status of the S&P 500?

Wall Street capped its eighth straight winning week. The S&P 500 rose by 0.2%, nearing its record set almost two years ago. This marked the longest winning streak for the S&P 500 since 2017.

What were the key economic reports released on the previous Friday and their impact?

Several economic reports released on Friday showed a slowdown in inflation, with the Federal Reserve’s preferred inflation measure dropping to 2.6%. Consumer spending in the U.S. unexpectedly rose, indicating potential growth but also suggesting inflationary pressures. Orders for durable goods increased more than expected, but sales of new homes weakened and consumer sentiment improved.

How did the U.S. Treasury yields and currency exchange rates respond to these economic reports?

The yield on the 10-year Treasury note remained stable at 3.90%. The U.S. dollar weakened against the Japanese yen and the euro, with slight declines in their respective exchange rates.

More about Asian stock markets

  • Asian Stock Market Performance
  • Wall Street Weekly Gains
  • Economic Reports Impact on Treasury Yields
  • Currency Exchange Rate Trends

You may also like


Mike_Trader December 25, 2023 - 10:31 am

interesting to see how the asian markets are reacting, Wall street really setting the tone here!

StockGuru22 December 25, 2023 - 1:58 pm

wow, S&P 500 is on a roll, 8 weeks of gains thats impressive…

CurrencyAnalyst December 25, 2023 - 2:26 pm

The dollar’s fall against yen and euro’s interesting, shows the global impact of these reports.

JaneDoe1990 December 25, 2023 - 6:33 pm

gotta say, the fed’s balancing act sounds tough. high interest rates, inflation, no easy job huh?

EconWatcher December 26, 2023 - 12:13 am

consumer spending up, but new home sales down? economy’s sending mixed signals.


Leave a Comment


BNB – Big Big News is a news portal that offers the latest news from around the world. BNB – Big Big News focuses on providing readers with the most up-to-date information from the U.S. and abroad, covering a wide range of topics, including politics, sports, entertainment, business, health, and more.

Editors' Picks

Latest News

© 2023 BBN – Big Big News