In the latest market developments across the Asia-Pacific region, Japan’s stocks extended their gains as the Bank of Japan (BOJ) maintained its ultra-loose monetary policy in the final meeting of the year. The BOJ’s decision to leave interest rates at -0.1% and adhere to the yield curve control policy influenced Japan’s Nikkei 225, closing 1.37% higher at 33,675.94.
China, however, experienced a divergent response. While the People’s Bank of China kept its one-year loan prime rate unchanged at 3.45%, China’s CSI 300 index closed 1.1% lower at 3,297.50. This mixed reaction reflected the intricate dynamics in the region’s financial landscape.
Optimism from Wall Street contributed to the positive momentum. The S&P 500 edged closer to a record high, and the Dow Jones Industrial Average recorded its ninth consecutive day of gains. This upbeat sentiment resonated in Australia, where the S&P/ASX 200 reached a 10-month high, closing 0.65% higher at 7,537.90.
The yen steadied against the dollar, with a minimal 0.08% increase, standing at 143.71. Hong Kong’s Hang Seng index gained 0.56%, while China’s CSI 300 was the only notable decliner in Asia.
The global market landscape also witnessed movements in oil prices. Concerns over Red Sea disruptions due to attacks on vessels by militants based in Yemen contributed to a rise in oil prices. The West Texas Intermediate contract for January settled at $73.44 a barrel, reflecting a 1.34% increase.
In other financial news, Alibaba reduced its stake in electric-vehicle maker Xpeng, leading to a 3% rise in Alibaba’s Hong Kong-listed shares. The Australian dollar remained largely flat against the U.S. dollar as the Reserve Bank of Australia kept interest rates steady.
As markets exhibit fluctuations and responses to various economic factors, analysts are closely watching the evolving dynamics, with some expressing bullish sentiments on the long-term prospects of certain sectors despite the broader challenges faced by the energy stocks.