On Thursday (14th), the Asia-Pacific stock markets showed mixed performances, with key indices displaying divergent trends. The Nikkei 225 index and the Korean KOSPI index both rose by more than 0.5%, while the Taiwan Weighted Index turned from gains to losses during the session, and the Hang Seng Tech Index fell by over 1.5%, leading the decline in the Asia-Pacific market.
On the news front, the overall U.S. CPI year-on-year growth rate in October reached 2.6%, hitting a three-month high and ending six consecutive months of decline. The month-on-month growth of core inflation remained unchanged for three months, in line with market expectations. After the inflation data was released, according to the latest data from CME, the expectation of a Fed interest rate cut in December has significantly increased, with the market estimating the probability of a 25 basis point rate cut has surged to 82.1%.
In the global market, emerging market stocks are attracting more investors' interest. Analysts point out that the overall economic situation in emerging markets is improving, providing potential for future investments. Valuations indicate more upside in emerging markets, especially in terms of earnings per share growth, showing positive performance compared to developed markets. Analyst Nayar stated that this trend is likely to continue, with emerging market stocks expected to become a hot spot for investment again by 2025.
Additionally, Nayar has observed that a growing number of investors are showing keen interest in investment opportunities in Asia and emerging markets. He believes that as the Asia-Pacific and emerging market economies recover, stocks in these regions may offer more returns in the coming years.
