Asia-Pacific markets opened lower Friday following a subdued Wall Street session. Australia’s ASX/S&P 200 fell 0.17%. Japan’s benchmark Nikkei 225 index lost 1.36%, while the Topix declined 1.12%. Yields on the Japanese 10-year government bond rose to 1.94%, the highest since July 2007, data from LSEG showed. South Korea’s Kospi hovered just below the flatline, while the Kosdaq Index retreated 0.25%. Hong Kong’s Hang Seng Index declined 0.48%, while mainland CSI 300 was flat at the open.
The S&P 500 and Nasdaq Composite rose slightly on Thursday as investors prepared for next week’s interest rate decision from the Federal Reserve. The broad-based index inched up 0.11% to close at 6,857.12, while the Nasdaq Composite traded higher by just 0.22% to finish at 23,505.14. The Dow Jones Industrial Average slipped just 31.96 points, 0.07%, to 47,850.94. Treasury yields moved higher, while bitcoin resumed selling, pulling back 0.5%. The cryptocurrency dipped below $85,000 on Monday, hitting its lowest level since March. But the token rebounded early Tuesday and has continued to trade above the $90,000 level through the week, offering a glimmer of hope to downtrodden crypto investors.
Gold prices fell below $4,200 per ounce on Friday as investors awaited key US data ahead of next week’s FOMC decision. Focus is on the postponed September PCE report, the Fed’s preferred inflation gauge, due later today, which could clarify the timing and pace of monetary easing. Meanwhile, ADP reported an unexpected drop of 32K in private payrolls, and Challenger recorded 71K layoffs in November, bringing the year-to-date total close to 1.17M, signalling a cooling labour market. These developments have strengthened expectations of a Fed rate cut next week, with markets pricing in roughly an 87% probability. Reports that White House economic adviser Kevin Hassett could succeed Fed Chair Powell in May have also fuelled speculation of a shift toward more aggressive easing. Over the week, gold is on track for a modest loss.
WTI crude oil futures hovered around $59.7 per barrel on Friday, holding at a two-week high and remaining on track for a weekly gain, driven by geopolitical risk premium. Traders continued to watch for a possible US move in Venezuela after President Donald Trump signalled imminent action against the oil giant, with Rystad Energy warning that any escalation could threaten the country’s 1.1 million bpd of crude output. Prices were also supported by the lack of progress in US talks in Moscow over the Ukraine war, which reduced the near-term prospects for restoring Russian supply, while Ukraine continued targeting Russian energy infrastructure. Expectations of a US rate cut, which could stimulate economic activity and boost oil demand, also added upward pressure. Still, concerns over demand and potential oversupply capped gains, with Saudi Arabia lowering its January Arab light crude price for Asia to its lowest level in five years, while Canadian oil tumbles to its weakest since March.
Israel said it launched an airstrike on a Hamas militant in southern Gaza late Wednesday in retaliation for an attack earlier in the day that wounded five Israeli soldiers. The strike was the latest test for a fragile ceasefire that has mostly held up since early October, despite claims of violations by both Israel and Hamas. Hamas put out a statement condemning the strike in Khan Younis. Earlier Wednesday, Israel received remains of what could be one of the last hostages in Gaza and said it would begin allowing Palestinians to leave the war-torn territory through a border crossing with Egypt.
China’s home prices are forecast to decline 3.7% this year, broadly in line with the previous poll, and to continue falling through 2026 before stabilising in 2027, the latest quarterly Reuters survey showed. Prices are projected to fall 2.8% in 2026, a sharper decline than the 0.5% drop forecast in the previous poll, and to remain flat in 2027 versus an earlier prediction of 2.0% growth, according to the survey conducted from November 17 to December 3. China’s property sector has been reeling since tighter regulations sparked a 2021 liquidity crunch among real estate developers, with many subsequently defaulting on debt. While authorities rolled out a series of measures, including in the second half of 2024 to support the sector, large-scale new stimulus has been withheld this year. After cutting mortgage costs for some buyers in the first half of 2025, policymakers have repeatedly pledged to stabilise the market.
The U.S. dollar languished not far from a five-week low against its major peers on Friday as investors braced for a Federal Reserve rate cut next week. Markets widely expect a quarter point reduction when the policy-setting Federal Open Market Committee meets on December 9-10, and a focus will be on any signals about how much additional easing lies ahead. The dollar index, which measures the currency against six rivals, was flat at 99.065 early in Asia. A small gain overnight snapped a nine-day losing streak, but the index had dipped to a five-week low of 98.765 earlier that session, and it remains on course for a 0.4% decline this week. Traders are pricing around 86% odds of Fed cut next Wednesday, and potentially 2-3 more reductions next year, LSEG data showed. Fed officials have been carefully watching the labour market to determine whether the economy needs further support.
British businesses expect to reduce staff numbers but raise prices at a similar rate to before, according to a survey of more than 2,000 firms on Thursday by the Bank of England that was conducted before finance minister Rachel Reeves’ annual budget. The Decision Maker Panel conducted between November 7 and November 21, showed firms planned to raise prices by 3.7% percentage points over the next 12 months, 0.1 percentage points more than they had expected one month earlier. Expectations for employment over the next year weakened, falling by 0.1 percentage points to -0.2% in the three months to November. Companies’ expectations for consumer price inflation in the year ahead were unchanged in the same period at 3.4% in November. British consumer price inflation fell to 3.6% in October and the BoE expects it to have peaked, strengthening its case to cut interest rates from their current 4%.
Dell Technologies announced Thursday that its board of directors has declared a quarterly cash dividend of $0.525 per common share. The dividend will be payable on Jan. 30, 2026, to shareholders of record as of Jan. 20, 2026. The technology company increased its annual cash dividend by 18% to $2.10 per common share following board approval in February 2025, according to the company’s press release statement. This dividend growth aligns with Dell’s strong financial position, as the company currently trades at a P/E ratio of 18.37 with a favourable PEG ratio of 0.72, indicating it may be undervalued relative to its growth prospects. Dell Technologies describes itself as a provider of technology and services portfolio for organizations and individuals building their digital future.
Cybersecurity firm SentinelOne forecast fourth-quarter revenue below analysts’ expectations on Thursday, and said Chief Financial Officer Barbara Larson will step down. The shares of the company fell more than 7% in extended trading. The muted outlook underscores the challenges SentinelOne faces as it navigates an increasingly competitive cybersecurity market, where artificial intelligence tools are reshaping threat detection and endpoint protection. SentinelOne develops the AI-powered Singularity platform, which ingests and analyzes security data in real time, automates threat detection and response, and reduces manual work for security teams. It competes with the likes of firms such as CrowdStrike and Palo Alto Networks, which maintain a dominant position in the industry.
Global cosmetics maker Estée Lauder Companies is focused on expanding market share and increasing sales by developing new brands, targeting younger shoppers worldwide and customizing products to meet consumers’ needs across cultures, its CEO said on Thursday. Estée Lauder Chief Executive Officer Stéphane de La Faverie, speaking at the Reuters NEXT conference in New York, said the Tom Ford brand parent sees the middle class that is emerging globally as a key market between now and 2030. The company, which is in the middle of a turnaround, is also looking to rebalance growth by embracing the Americas and emerging markets, though not at the expense of China, whose consumers have faltered with their spending in recent years, he added. Estee Lauder’s skin care brand The Ordinary, which has products ranging from $9 to $34, has gained popularity with Gen Z shoppers, whose buying power is increasing.
Ulta Beauty raised its annual sales and profit forecast on Thursday, betting on strong demand for its makeup and skincare products going into the holiday season. Shares of the company, which also reported third-quarter results above estimates, were up about 5% in trading after the bell. The cosmetic retailer enjoyed strong sales at its outlets, helped by its trendy and affordable offerings, along with marketing efforts, which helped attract shoppers, especially younger demographics. Ulta also benefits from fast-growing demand for fragrances, as well as the popularity of celebrity-owned labels on its shelves, including Rihanna’s Fenty Beauty. The positive outlook comes at a time when budget-conscious consumers are pulling back on discretionary spending amid macroeconomic uncertainty, causing expectations of muted holiday spending in the U.S. this year.