Asian Stock Markets Rally on US Inflation Relief: Most Asian stocks traded higher on Monday, following gains on Wall Street. The ease in U.S. inflation data spurred bets that interest rates will likely fall in the coming year too.
Japanese and Korean stocks were among the better performers for the day, gaining more than 1%. In Japan, there is speculation over a potential merger between Honda and Nissan as reports said a deal was close, improving the market sentiments today.
Asian markets took positive cues from Wall Street, which surged on Friday after PCE Price Index data- the Federal Reserve’s preferred inflation gauge- read softer than expected for November. The data helped ease some concerns that U.S. rates will fall at a slower pace in 2025, especially after the US Federal Reserve comments on a hawkish tone during a meeting last week.
U.S. stock futures rose in Asian trade, also supported by optimism over the U.S. government avoiding a shutdown. The major indexes like Shanghai, Hang Seng, Kospi, Taiwan, and Nikkei are trading in the green territory today.
Will Indian Stock Market Rally Today?
The Indian stock market indices after a sharp fall in the last week may follow the other Asian market trends. Nifty hourly RSI showed a very oversold zone so there can be some bounce back expected. Traders should remain cautious as any pullback can fizzle out, as the bears are in a dominating position currently.
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