Asia stocks dither despite Fed easing bets; Nikkei jumps on tech gains

Investing.com-- Most Asian stock markets were largely subdued on Thursday, tracking modest gains on Wall Street amid expectations for a Federal Reserve rate cut, while Japanese shares rose sharply with gains in tech, chipmakers.

Major Wall Street indices edged higher overnight, while futures tied to them traded largely unchanged in Asia hours on Thursday.

Fed easing bets firm; Nikkei jumps

Market sentiment was underpinned by firm bets on a Fed rate reduction next week, following weaker-than-expected U.S. economic data. The ADP private payrolls report showed a slowdown in hiring, while the ISM services index indicated softer activity in the service sector.

Traders are pricing in roughly a 90% chance of a 25-basis-point cut on Dec .10, according to CME FedWatch tool.

Investors now await Friday’s personal consumption expenditures (PCE) inflation report, which could further influence expectations for Fed policy.

Despite the cautious tone elsewhere, Japanese shares bucked the regional trend, with the Nikkei 225 and TOPIX jumping 1.6%, led by technology and semiconductor stocks. 

Elsewhere in the region, markets remained more muted, as investors continue to monitor regional growth signals and geopolitical developments, which could affect risk appetite.

Concerns over U.S. fiscal policy and leadership changes at the Fed next year also weighed on sentiment. With some key data missing due to earlier government shutdown disruptions, investors remain cautious until the economic picture becomes clearer.

Most markets tepid; Australia trade figures in focus

China’s blue chip Shanghai Shenzhen CSI 300 edged 0.3% higher, while the Shanghai Composite index was muted.

Hong Kong’s Hang Seng index ticked up 0.2%. India’s Nifty 50 traded 0.3% higher.

Among regional laggards, South Korea’s KOSPI slipped 0.6%, while Singapore’s Straits Times Index dipped 0.2%

In Australia, the October trade balance was released on Thursday, showing Australia’s trade surplus grew slightly below expectations as exports slowed sharply amid weak overseas demand for the country’s key commodities.

Australia’s S&P/ASX 200 index gained 0.2%.