Major Gulf markets gain on oil
Major stock markets in the Gulf rose in early trade on Thursday, supported by climbing oil prices and anticipation of next week’s U.S. Federal Reserve meeting, as investors look to upcoming data for clearer signals on the central bank’s interest rate path.
Oil prices firmed after Ukrainian attacks on Russia’s oil infrastructure signalled potential supply constraints, and stalled peace talks tempered expectations of a deal restoring Russian oil flows to global markets, though weak fundamentals kept gains limited.
Saudi Arabia’s benchmark index gained 0.5 percent, with Saudi Arabian Mining Company climbing 1 percent while oil giant Saudi Aramco rising 0.4 percent.
China stocks snap three-day slide on chip optimism
China stocks edged higher on Friday, snapping a three-day losing streak, on renewed optimism surrounding domestic chipmakers, although major indexes remained on course for a weekly decline.
By the midday break, the Shanghai Composite Index was up about 0.1 percent at 3,878.98, after spending much of the morning under pressure.
The modest advance put the benchmark index on track for its first daily gain after three consecutive declines, but it remained 0.3 percent lower for the week amid a lack of fresh catalysts ahead of a key policy meeting.
The blue-chip CSI 300 Index edged 0.1 percent higher and has gained 0.6 percent so far this week.
The spotlight on Friday was on Moore Threads Technology Co, often called “China’s Nvidia”, which surged roughly fivefold in its trading debut, reflecting expectations that the US-sanctioned firm will gain from Beijing’s push to strengthen domestic chip production.
Australia shares dip
Australian shares edged lower on Friday and were set to end the week on a downbeat note, as expectations of tighter monetary policy weighed on financials, while gains in technology stocks kept the benchmark index afloat.
The S&P/ASX 200 index was down 0.2 percent at 8,598.90, as of 2325 GMT.
The benchmark ended 0.3 percent higher on Thursday.
The Australian benchmark has slipped 0.1 percent so far this week, as investors pared exposure to expensive banking stocks amid upbeat economic data, including strong GDP growth, which has reinforced expectations of an interest rate hike next year.
A high interest rate environment, though historically supportive of banks, often curbs borrowers’ appetite for mortgages.
Swaps imply that the Reserve Bank of Australia (RBA) will likely keep cash rates on hold early next year, with a split possibility of a hike as soon as May 2026.
Market participants are now widely expecting the RBA to hold its cash rate at its monetary policy meeting on Tuesday, a Reuters poll showed.
India’s stock benchmarks set to open higher
India’s stock benchmarks are set to open higher on Friday, with investors divided over the Reserve Bank of India’s policy decision as strong economic growth and a weakening rupee cloud the case for a rate cut.
Gift Nifty futures were trading at 26,184.5 points as of 6:55 a.m. IST, indicating that the benchmark Nifty 50 will open above Thursday’s close of 26,033.75.
The RBI’s decision is due at 10:00 a.m. IST.
A Reuters poll had forecast a 25-basis-point cut in the policy repo rate ahead of GDP data released last month.
India’s economy grew at its fastest pace in 18 months in the September quarter, lifted by robust consumer spending, while retail inflation slumped to a record low in October.
Expectations of a rate cut eased after the better-than-expected growth data and the recent slide in the rupee.
“The monetary policy decision and commentary will be crucial, especially for rate-sensitive banks as rate cut probability has reduced post the robust growth data,” said Vinod Nair, head of research of Geojit Investments.
Japan’s Nikkei skids in subdued Asia
Japan’s Nikkei skidded on Friday, wiping out this week’s gains amid an otherwise subdued Asian session, after weaker-than-expected spending data underscored the scourge of inflation as bets grew that the Bank of Japan would hike interest rates.
The Nikkei 225 fell 1.5 percent and was on track to end the week mostly flat. MSCI’s broadest index of Asia-Pacific shares outside Japan was off 0.1 percent but was still set for a gain of 0.5 percent for the week.
Data showed household spending in Japan unexpectedly fell the fastest in nearly two years in October, as inflation ate into people’s spending power. The yield on 10-year Japanese government bonds hit 1.94 percent early in Asia, its highest since mid-2007.
The benchmark yield was on track for a 13.5 basis point rise this week, marking the steepest five-day climb since March, but recent strong auction results suggested the cheap bond prices are drawing buyers into the market.
“In previous cycles, moves of that size would have rattled markets. Instead, demand strengthened,” said Nigel Green, chief executive at deVere Group.
Wall street mostly flat
Wall Street’s major indexes were mostly flat on Thursday, as investors reviewed fresh labor-market signals and firmed up their expectations for a possible Federal Reserve rate cut next week.
With the November payrolls report scheduled after the Fed’s December meeting, traders have leaned on secondary indicators that paint a muddled picture of the job market.
A Labor Department report showed new jobless claims dropping to their lowest level in more than three years, but the data captured last Thursday’s Thanksgiving holiday, a period when claims often whipsaw.
South Korean shares end lower
South Korean shares closed marginally lower on Thursday, as chipmakers fell on worries about overvaluation of artificial intelligence stocks, countering gains in automakers.
The benchmark KOSPI closed down 7.79 points, or 0.19 percent, at 4,028.51.
U.S. stocks closed higher on Wednesday, as a flurry of economic data kept expectations elevated for an interest rate cut by the Federal Reserve next week.
However, Microsoft fell as much as 3 percent after a report said the tech giant has cut AI software sales quotas, while chipmakers Nvidia and Micron Technology also declined.