Asia stocks rise as US inflation cements rate cut bets, China policy meet in focus

Investing.com– Most major Asian stocks rose on Thursday tracking an overnight rally in technology shares on Wall Street, as U.S. inflation data cemented bets for an interest rate cut by the Federal Reserve next week.

U.S.  data on Wednesday showed inflation rose at its fastest pace in seven months in November, but was largely in line with expectations. This led to markets pricing in a 98% chance for a 25 basis point rate cut next week, up from 81% seen last week, according to .

U.S. stock indexes closed higher overnight, with the hitting a record high above 20,000 points. Gains were fueled largely by technology stocks.

Wall Street futures fell slightly in Asian trade.

Chinese shares rise, CEWC awaited for stimulus cues

China’s  index was 0.4% higher, while the  index gained 0.6%. Hong Kong’s  index jumped 1.3%.

Focus was on China’s China’s Central Economic Work Conference (CEWC), a two-day meeting set to conclude later on Thursday. Markets hope to get details on fresh stimulus measures from the meeting, after China’s Politburo offered its most dovish signals yet on plans support economic growth.

Elsewhere, stock markets were largely mixed, with Philippine’s index inching 0.3% lower, and Thailand’s rising 0.4%

India’s indicated a slight dip at open, while Indonesia’s fell 0.4%.

Japan, S.Korea stocks buoyed by tech gains

Japan’s jumped 1.6% and climbed 1.1%, with gains in heavyweight technology stocks. Sony Corp (TYO:) was up 2.7%, while Panasonic (OTC:) Corp (TYO:) rose 1.5%.

South Korea’s index rose 0.4%, with major tech stocks on the rise. However, ongoing political unrest in the country still kept investors on edge.

Media reports stated that South Korean police tried to raid President Yoon Suk Yeol’s office on Wednesday, after he became subject to a criminal investigation over his attempt to declare martial law in the country.

Australian shares fall after jobs data spurs rate uncertainty

Australia’s fell 0.3% on Thursday after data showed that the country’s rose more than expected in November, as the labor market remained strong, while unexpectedly fell.

The data resulted in market participants further paring bets that the Reserve Bank of Australia would cut interest rates in the near term. Broad consensus is that the RBA will begin cutting rates in the second quarter of 2025.

The RBA on Tuesday had held rates unchanged, citing tight labor market conditions and stubborn underlying inflation in the county, although it did note that inflation was easing in line with expectations.