On Wednesday (11 November, 9:28 AM, GMT+7, Bangkok time), major indices in the Asia-Pacific displayed uneven performance as investors reacted to declines on Wall Street. Markets responded to unexpectedly high U.S. inflation data, raising concerns about possible interest rate hikes from the Federal Reserve.
Technology stocks came under particular pressure, influenced by a significant drop in Nvidia. The stock experienced a 5.5% decrease, as ongoing reports regarding CEO Jensen Huang’s involvement with a purported Chinese intelligence operative weighed on investor sentiment for a second session. The two-day decline reduced Nvidia’s market capitalization to about $4.07 trillion, levels not seen since March.
Data showed the U.S. consumer price index rose 0.4% month-on-month in October, surpassing forecasts. In response, market expectations for a 25 basis point rate hike by the Fed in December climbed to approximately 90%, according to CME Group’s FedWatch tool.
Federal Reserve officials responded to the inflation figures with calls for swift policy action. Dallas Fed President Lorie Logan indicated more accelerated rate increases may be required over the winter to rein in inflation, echoing earlier statements from Governor Christopher Waller, who said a half-point hike could be justified in December.
Concerns over the potential for more aggressive Fed action have rattled markets, threatening momentum for stocks attempting to recover from volatility caused by recent political developments in Washington.
Japan’s NIKKEI rose by 0.76% to 60,921.60. South Korea’s KOSPI grew by 0.70% to 5,275.92, and Australia’s ASX 200 climbed by 0.02% to 9,130.80.
Shanghai’s SSEC dropped by 0.28% to 3,653.57. Shenzhen’s SZI fell by 0.48% to 11,187.24, and Hong Kong’s HSI contracted by 0.68% to 24,389.57.
The U.S. stock markets edged down on Tuesday as the Dow Jones Industrial Average (DJIA) lost 0.30% to 52,231.89. NASDAQ declined by 0.74% to 25,065.87, and the S&P 500 slid by 0.38% to 7,520.93. VIX slumped by 2.31% to 19.46.
As for commodities, oil prices settled lower on Tuesday as statements from U.S. officials indicated a reduced likelihood of further military engagement with Iran, which helped to calm concerns over supply issues from the Middle East. Brent crude closed down $1.08, or 1.2%, at $91.49 per barrel. U.S. West Texas Intermediate crude finished 81 cents, or 0.9%, lower at $86.04.
This morning, Brent futures gained 68 cents, or 0.74%, to $92.17 per barrel, and WTI futures increased 41 cents, or 0.48%, to $86.45 per barrel.
Meanwhile, gold futures added 0.47% to $4,049.20 per troy ounce.
