Ho Chi Minh Times

Monday, Jan 06, 2025

Asian Markets Show Mixed Performance Amid Economic Uncertainty

Investor Caution Persists as U.S. Policies and China Concerns Cloud Outlook
Asian stock markets closed the week with mixed results, reflecting ongoing uncertainty over global economic trends and the potential impact of U.S. policies under President Donald Trump. The MSCI Asia-Pacific index rose slightly by zero point three eight percent, led by gains in South Korean shares. However, the index remains set for a one percent weekly decline despite an eight percent gain over two thousand twenty-four.

In China, economic concerns kept investors on edge. The blue-chip CSI three hundred index dipped zero point two one percent, marking its largest weekly drop in nearly a year. Meanwhile, Hong Kong’s Hang Seng index rose zero point five eight percent, offering some relief. Long-term Chinese bond yields fell further, hitting record lows as investors sought safer assets.

On Wall Street, U.S. stocks ended lower on Thursday, with Tesla shares falling sharply after reporting its first annual decline in deliveries. Investor sentiment was dampened by concerns over rising bond yields and the strength of the U.S. dollar. Analysts suggest that while Trump's pro-business agenda could boost the U.S. economy, potential tariffs and a stronger dollar may pose challenges for global markets.

In the currency markets, the U.S. dollar index held firm near a two-year high, while the euro and yen struggled to recover from recent losses. Oil prices edged higher amid hopes for economic recovery in China, with Brent crude at seventy-six dollars and West Texas Intermediate at seventy-three dollars per barrel. Gold remained steady at two thousand six hundred fifty-six dollars per ounce after posting its strongest annual gain since two thousand ten.

With global markets navigating policy shifts and economic uncertainties, investors remain cautiously focused on upcoming U.S. economic data, including employment and inflation figures, as indicators for future market trends.

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