Asian Stocks Set to Decline Following Wall Street’s Dismal Day
Asian markets are expected to open lower as US stocks continue to struggle, reflecting a cautious start to the year.
Asian Stocks, Wall Street, US Stocks, Nikkei, Tesla, Tokyo, Japan
Tokyo: So, it looks like Asian stocks are gearing up for a rough start today. After a tough day on Wall Street, where US stocks fell for the fifth straight day, investors are feeling a bit jittery.
Futures for shares in Australia and Hong Kong are already slipping, following the trend set by New York trading. Even the Nikkei futures are down, but Japan’s markets are closed for a holiday today.
The S&P 500 and Nasdaq 100 both dropped by 0.2%. A big part of that was due to Tesla’s disappointing fourth-quarter deliveries, which missed expectations. It’s the first time in over a decade that their annual sales have dropped, and their stock has taken a hit, falling 18% since Christmas.
On the currency front, the dollar is on a roll, hitting a two-year high, while the yen has weakened against it for the third day in a row. Meanwhile, bond yields in Australia and New Zealand are holding steady, reflecting some calm in the market.
In the US, initial jobless claims have dropped to an eight-month low, which is a good sign for the labor market. But, economists are warning that holiday season adjustments can make these numbers a bit tricky.
As for corporate earnings, 2025 is shaping up to be a crucial year. Some experts are saying that the big tech stocks that have been driving the market might not be able to keep it up. It’s a bit of a wait-and-see game.
In Asia, traders are keeping an eye on upcoming data releases, like retail sales in Singapore and international reserves in Thailand. Plus, there’s a vote happening for the House speaker that could impact President-elect Trump’s plans.
Looking ahead, the growth outlook in Europe and China, along with the Fed’s policies, will be hot topics for traders. In Europe, energy shares are doing well due to rising natural gas prices as the region braces for a cold winter.
Overall, it’s a mixed bag out there, and everyone’s watching closely to see how things unfold.