What's Affecting Markets Today
Asia-Pacific Markets Rebound as Fed Signals Potential December Rate Cut
Asia-Pacific equities opened the week on a stronger footing after New York Federal Reserve President John Williams indicated a third US rate cut this year remains possible. Williams said labor market softness now poses a greater economic risk than inflation, lifting expectations for policy easing when the Fed meets for the final time in 2025 on December 9–10. Markets are pricing in a 70 per cent chance of a quarter-point reduction, up from 44 per cent mid-November, according to CME FedWatch.
The improved sentiment followed a week of broad declines across regional tech stocks. On Monday, South Korea’s Kospi rose 1.56 per cent, with Samsung gaining 4.4 per cent. Australia’s S&P/ASX 200 added 1.12 per cent, recovering from Friday’s sharp drop. Qube surged nearly 20 per cent after receiving an A$11.6 billion takeover bid from Macquarie Asset Management, while BHP edged 0.4 per cent higher after ending merger discussions with Anglo American.
Hong Kong’s Hang Seng jumped 1.41 per cent, supported by gains in technology and healthcare, while China’s CSI 300 hovered just below flat. Japanese markets were closed for a public holiday.
ASX Stocks
ASX 200 8,521.50 (+1.25%)
ASX Rebounds as Tech, Industrials and Healthcare Drive Broad Rally
The Australian sharemarket rebounded from a six-month low on Monday, lifted by strength across industrials, technology and healthcare. The S&P/ASX 200 rose 1.2 per cent to 8514.40 by mid-afternoon, recovering after nearly $40 billion was wiped from the index late last week amid fading US rate-cut expectations.
Sentiment improved after New York Fed president John Williams signalled room for near-term easing, with traders now assigning a 70 per cent probability to a December cut, up from 39 per cent. Rate-sensitive tech stocks led the recovery, with WiseTech gaining 2 per cent and Life360 jumping 6.9 per cent.
Industrials outperformed following a 17.8 per cent surge in Qube after receiving an $11.6 billion takeover offer from Macquarie Asset Management. Healthcare also advanced, highlighted by a 40.2 per cent spike in Monash IVF after rejecting an unsolicited bid. CSL added 2.2 per cent.
Elsewhere, Lynas rose 4.7 per cent, MA Financial climbed 2.4 per cent, and Pro Medicus added 4.7 per cent on new US contract wins. BHP slipped 0.4 per cent after confirming it had ended talks with Anglo American.
Leaders
QUB QUBE Holdings Ltd (+17.81%)
REH Reece Ltd (+12.75%)
SGM Sims Ltd (+7.56%)
SLC Superloop Ltd (+6.82%)
SDR Siteminder Ltd (+6.76%)
Laggards
LTR Liontown Resources Ltd (-6.29%)
C79 Chrysos Corporation Ltd (-5.11%)
PLS Pilbara Minerals Ltd (-3.46%)
IGO IGO Ltd (-3.32%)
EOS Electro Optic Systems (-3.28%)