Asia-Pacific markets trade mixed as investors await key policy meeting in China

Anniek Bao

Asia-Pacific markets were mixed Wednesday, after major Wall Street benchmarks declined ahead of key inflation data that could influence the Federal Reserve’s interest rate decision.

China is reportedly kicking off its annual economic work conference on Wednesday to outline its economic policies and growth targets for next year.

Hong Kong’s Hang Seng index started the trading session 0.66% higher, while mainland China’s CSI 300 index was flat.

In South Korea, the blue-chip Kospi jumped 0.78% and the small-cap Kosdaq rose 2%, a day after the country’s parliament passed a downsized budget of 673.3 trillion won ($470.60 billion) for 2025 late yesterday.

This is reportedly the first time that a spending bill had been trimmed down without consent from government ministries.

On Wednesday, South Korea’s corruption investigation office for high-ranking officials reportedly said it would seek the detention and arrest of President Yoon Seok Yeol if conditions are met.

This comes after media reports emerged that police had raided the presidential office as part of an investigation into Yoon’s brief imposition of martial law.

South Korea also reported a seasonally adjusted unemployment rate of 2.7% in November, according to Statistics Korea, unchanged from the previous month.

Japan’s Nikkei 225 shed 0.32% while the broad-based Topix traded nearly flat.

Australia’s S&P/ASX 200 was 0.57% lower.

Overnight in the U.S., the Dow Jones Industrial Average fell for a fourth straight day, losing 154.10 points, or 0.35%, to 44,247.83.

The S&P 500 fell 0.3% to end at 6,034.91, and the Nasdaq Composite lost 0.25% to 19,687.24. Both indexes fell for a second straight day.

Investors await the U.S. consumer price index report for November, due on Wednesday, which could influence the Federal Reserve interest-rate path at its policy meeting from Dec. 17 to Dec. 18.

The closely-watched economic index is forecast to have risen slightly to 2.7% 12-month inflation rate, accelerating by 0.1 percentage point from the previous month, and above the Fed’s targeting annual inflation at 2%, according to the Dow Jones estimates.

— CNBC’s Sean Sonlon and Brian Evans contributed to this report.

Japan’s wholesale inflation rate beats expectations; rises for third straight month

Japan’s wholesale inflation rate for November beat expectations, rising for a third straight month.

The producer price index rose 3.7% year on year, a faster clip than the revised 3.6% climb in October and above the 3.4% expected by Reuters.

The stronger than expected inflation reading could strengthen the case for the Bank of Japan to raise interest rates at its next meeting, ending Dec. 19.

— Lim Hui Jie

Nippon Life to acquire U.S. life insurance company Resolution Life for $8.2 billion

Japanese life insurer Nippon Life has announced an $8.2 billion bid for U.S. counterpart Resolution Life on Tuesday.

The transaction is expected to be completed in the second half of 2025, and comes amid the attempted takeover of U.S. Steel by Nippon Steel.

Nippon Life had said that its goal by 2035 is to double its “core operating profit” and increase policyholder dividends.

— Lim Hui Jie

CATL shares rise on $4.3 billion joint EV battery gigafactory in Spain

Shares of Chinese battery maker CATL jumped 1.2% Wednesday, a day after the company announced a 4.1 billion euro ($4.33 billion) joint venture with Netherlands-headquartered carmaker Stellantis.

The joint venture will build a large-scale electric vehicle battery factory in Zaragoza in northeastern Spain, which is scheduled to start production by the end of 2026, according to CATL’s statement on Tuesday.

The plant “will enable CATL to better meet customers’ need for advanced battery technology and support for global climate ambitions,” the company said.

The battery plant will be built and implemented in several phases while the transaction is expected to close over the course of 2025.

— Anniek Bao

See the stocks moving after hours

Here are some stocks moving in extended trading:

• General Motors — Shares of the automotive giant popped nearly 3% after General Motors said it would no longer fund robotaxi development by self-driving car company Cruise.
• GE Vernova — The energy equipment company slid 3% after providing full-year revenue guidance for both the 2024 and 2025 fiscal years that was weaker than expected by analysts polled by FactSet.

— Alex Harring

8 stocks in the S&P 500 trade at new 52-week highs

During Tuesday’s trading session, eight stocks in the S&P 500 reached new 52-week highs.

Names that hit this milestone included:

• AutoZone trading at all-time-high levels back to its initial public offering in April 1991
• O’Reilly Auto trading at all-time-high levels back to its IPO in April 1993
• Tesla trading at levels not seen since November 2021
• Citigroup trading at levels not seen since October 2021
• MSCI Inc. trading at levels not seen since December 2021
• Catalent trading at levels not seen since April 2023
• Apple Inc. trading at all-time-high levels back to its IPO in December 1980
• ServiceNow trading at all-time-high levels back to its IPO in June 2012

On the flip side, just three stocks were trading at their 52-week lows: Baxter, Centene and Teleflex.

— Lisa Kailai Han, Christopher Hayes

A volatile bull market is in store for 2025, says Citi

While stocks may be due for more gains in 2025, Citi believes investors should also brace for more volatility given an uncertain policy outlook and raised valuations.

“We maintain a positive view on US equities headed into 2025,” the firm’s U.S. equity strategist Scott Chronert wrote. “Ongoing soft landing and Artificial Intelligence tailwinds now interact with Trump policy promise, and risks. Continued broadening beyond Mega Cap Growth impacts is critical but an extended valuation starting point will be an ongoing hurdle.”

The strategist has a year-end 2025 base case target for the S&P 500 of 6,500, allowing for gains in the mid-single digits next year. However, his bull case of 6,900 and bear case of 5,100 allow for a broad range of outcomes.

“Our bull and bear case assumptions help frame an expectation for increased volatility next year,” Chronert continued.

— Sean Conlon

A continued rally appears to be ‘path of least resistance’ for year-end 2024, says Barclays

The market may likely see more upside over the coming weeks, according to Barclays.

“Momentum seems so strong that a continued rally seems the path of least resistance for the rest of 2024,” analyst Ajay Rajadhyaksha wrote in a note this week.

Rajadhyaksha also said bond markets are expected to be “range-bound,” given that investors are awaiting more details on President-elect Donald Trump’s policies.

— Sean Conlon

Trump tariffs not expected to go into effect until late 2025, says Wolfe Research

President-elect Donald Trump’s tariff plans may not go into effect for some time, according to Wolfe Research’s Stephanie Roth.

“We don’t expect sweeping tariffs to go into effect until late 2025 — Republicans are reportedly discussing how to potentially leverage tariff revenue in a broader fiscal package, which increases the odds tariffs happen late in 2025 rather than early,” the firm’s chief economist wrote.

If a 10% universal baseline tariff and a 60% tariff on Chinese goods coming into the U.S. were to be implemented, Roth estimates the U.S. economy will be hit up to 1.2% in gross domestic product, and inflation will see a boost of 1.1%.

— Sean Conlon

U.S. Steel falls on report Biden will block Nippon sale this month

U.S. Steel shares plunged late Tuesday afternoon on a report that President Joe Biden plans to block the company’s acquisition by Japan’s Nippon Steel later this month.

U.S. Steel stock was briefly halted due to volatility. The company’s shares were down more than 9% after trading resumed.

People familiar with the matter told Bloomberg News that Biden will block the $14.1 billion sale once the Committee on Foreign Investment in the United States submits its review to him by Dec. 22 or Dec. 23.

— Spencer Kimball

Stocks close in the red for another day

The blue-chip Dow Jones Industrial Average fell 154.10 points, or 0.35%, to finish at 44,247.83 on Tuesday.

The broad market S&P 500 also fell 0.3% to settle at 6,034.91, and the tech-heavy Nasdaq Composite fell 0.25% to finish at 19,687.24.

— Sean Conlon

Source : cnbc