- Asian Stocks Rise as US Data Boost Fed Cut Bets: Markets Wrap
Asian equities tracked Wall Street’s gains as cooling US core inflation kept alive the prospect of Federal
Reserve easing this year. The yen jumped on Bank of Japan rate-hike expectations. Gauges in Australia, Hong
Kong and South Korea all advanced, sending an index of Asian equities higher for a third day. The S&P 500
closed Wednesday 1.8% higher, the benchmark’s best day since the November election, which erased its
2025 decline. US stock futures were steady. The yen rose on a report that BOJ officials see a good chance of a
rate increase next week as long as Donald Trump’s arrival at the White House doesn’t trigger too many
negative surprises. Treasuries and an index of the dollar were little changed. - Dow surges 700 points, S&P 500 posts best day since November after tame inflation report
Stocks surged Wednesday after the latest consumer price index report showed core inflation unexpectedly
slowed in December and major U.S. banks kicked off quarterly earnings reporting season with blowout
results. The Dow Jones Industrial Average advanced 703.27 points, or 1.65%, to close at 43,221.55. The S&P
500 climbed 1.83% to 5,949.91, and the Nasdaq Composite rallied 2.45% to 19,511.23. It was the best day for
all three major averages since Nov. 6. - Oil rises as US inventory declines heighten supply concerns
Oil prices rose for a second day on Thursday after a larger-than-expected decline in U.S. crude oil stockpiles
added to supply concerns stoked by U.S. sanctions against Russian energy trade. Brent crude futures rose 30
cents, or 0.4%, to $82.33 per barrel by 0120 GMT, after rising 2.6% to its highest since July 26 in the previous
session. U.S. West Texas Intermediate crude futures rose 32 cents, or 0.4%, to $80.36 a barrel after gaining
3.3% on Wednesday, reaching its highest since July 19. Prices rose after the U.S. Energy Information
Administration reported on Wednesday domestic crude oil stocks fell for the seventh time in a row last week,
the longest declining streak since July 2021. - Gold prices hover near 1-month peak on renewed rate-cut hopes
Gold prices were stable on Thursday after hitting their highest levels in more than a month, as softer U.S.
core inflation data lifted expectations of interest rate cuts, although news of a ceasefire accord between
Israel and Hamas capped further gains. Spot gold held its ground at $2,696.30 per ounce, as of 0301 GMT,
after hitting its highest point since Dec. 12 earlier in the session. U.S. gold futures gained 0.3% to $2,725.20. - Core inflation rate slows to 3.2% in December, less than expected
Prices that consumers pay for a variety of goods and services rose again in December but closed out 2024
with some mildly better news on inflation. The consumer price index increased 0.4% on the month, putting
the 12-month inflation rate at 2.9%, the Bureau of Labor Statistics reported Wednesday. Economists
surveyed by Dow Jones had been looking for respective readings of 0.3% and 2.9%. However, excluding food
and energy, the core CPI annual rate was 3.2%, a notch down from the month before and slightly better than
the 3.3% forecast. The core measure rose 0.2% on a monthly basis, also 0.1 percentage point less than
expected. - BOK’s Rhee Sees Political Stability as Key to Pace of Rate Cuts
Bank of Korea Governor Rhee Chang-yong linked the pace of future interest rate cuts to the economy’s
ability to remain resilient in the face of the political turmoil triggered by President Yoon Suk Yeol’s short
lived martial law decree. Following Thursday’s stand-pat decision by the central bank, Rhee said that his
board saw a “great chance” of another rate cut in the next three months with the pace of easing going
forward likely to depend on the state of the economy, the nation’s currency and the impact of Donald
Trump’s return to the White House. The decision to hold the rate at 3% came after two cuts in October
and November, and was predicted by only four of 22 economists surveyed by Bloomberg. The other 18
economists expected a quarter-point cut to support an economy overshadowed by Yoon’s suspension
from power and a Jeju Air crash last month that marked the worst aviation disaster in South Korean
territory. During a press briefing, Rhee acknowledged the deterioration in consumer confidence and
economic momentum, and characterized the latest decision as a tough call to shore up a currency
battered by political turmoil. He estimated that the political instability had weakened the local currency
by about 30 won against the dollar. - German economy contracts 0.2% in 2024 in second consecutive annual slowdown
The German economy contracted by 0.2% in 2024, in the country’s second consecutive yearly slowdown,
data from statistics office Destatis showed Wednesday. The drop was in line with the expectations of
economists polled by Reuters, according to LSEG data. The European Commission and a group of Germany’s
leading economic institutes had both independently forecast a 0.1% dip in the German GDP in 2024.
Ruth Brand, president of the German statistics agency, said that “cyclical and structural pressures” hindered
stronger economic development. “These include increasing competition for the German export industry on
key sales markets, high energy costs, an interest rate level that remains high, and an uncertain economic
outlook,” she said in a statement. Destatis said that both the manufacturing and construction sectors had
suffered in 2024, while the services sectors recorded growth over the period. The country has been dealing
with a long-standing housebuilding crisis, which has been attributed to higher interest rates and construction
costs. Several of Germany’s key industries, including the auto sector, have also been under pressure for some
time. Carmakers have been struggling with the transition to electric vehicles, as well as competition from
Chinese counterparts. The German stock index DAX was last higher after the data release, climbing by 0.47%
at 10:24 a.m. London time after already having started the day in positive territory. Germany’s economy had
already contracted by 0.3% in 2023. - UK inflation unexpectedly cools to 2.5%, core price print slows further
U.K. inflation fell to a lower-than-expected 2.5% in December, with core price growth slowing
further, according to data released by the Office for National Statistics on Wednesday. The consumer price
index (CPI) rose to 2.6% in November, with economists polled by Reuters expecting the December reading to
stay unchanged. Core inflation, which excludes more volatile food and energy prices, came in at 3.2% in the
twelve months to December, down from 3.5% in November. The U.K.’s inflation rate had hit a more than
three-year low of 1.7% in September, with monthly prices picking up since on the back of higher fuel costs
and of services fees rising rising faster than the price of goods. In December, the annual services inflation rate
stood at 4.4%, down from 5% in November. The British pound was up 0.1% against the dollar at 08:15 a.m.
London time, reversing an initial decline earlier in the session, after the data release. - Gaza ceasefire in Israel-Hamas deal to begin on January 19, Qatar confirms
After months of back and forth, mediators Qatar, Egypt and the US have finally cracked a ceasefire deal
between Israel and Hamas, Qatar’s Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman
Al Thani has announced on Wednesday. The leader while announcing some details of the deal, said that it will
be effective from January 19, and that Phase 1 will last for 42 days. “In phase one, Hamas will be releasing 33
Israeli captives, including civilian women and female recruits, as well as children, elderly people in return for
a number of prisoners who are being held in Israeli prisons,” the Qatar PM said. This deal comes after 15
months of war that killed and displaced tens of thousands of Palestinians. US President Joe Biden said on
Wednesday the three-step truce agreed between Israel and Hamas includes a “full and complete ceasefire”
as part of phase one and a “permanent end to the war” in an unfinalised second phase. - Apple fourth-quarter iPhone shipments in China drop 25% as Huawei closes in, Canalys data shows
Apple’s smartphone shipments in China plunged 25% in the fourth quarter of 2024, data from research firm
Canalys showed, as the iPhone maker faced mounting pressure from a resurgent Huawei in one of its biggest
global markets. The U.S. tech giant shipped 13.1 million units in China during the period, narrowly
maintaining its market lead with a 17% share, according to Canalys data released on Thursday.
Huawei captured 17% market share on shipments of 12.9 million units, placing it in a virtual tie with Apple for
market leadership, the Canalys data showed. Huawei, which posted a 24% rise in shipments in the fourth
quarter, has emerged as a particularly strong challenger since its return to the premium segment in August
2023 with locally-made chipsets. Apple has turned to rare discounts to stimulate sales amid growing
competitive pressure. The company launched a four-day promotion in China from Jan. 4-7, offering price cuts
of up to 500 yuan ($68.50) on its iPhone 16 models through its official channels. - Tesla’s Asian Rivals Pull Ahead in India’s Nascent EV Market
Suzuki Motor Corp.’s India unit, BYD Co. and VinFast Auto Ltd. are among carmakers gearing to showcase
their new electric vehicles in New Delhi as the fight intensifies for the fastest-growing major automobile
market where Tesla Inc. is conspicuous by its absence. The annual event this week, called Bharat Mobility
Global Expo, will see country’s largest carmaker, Maruti Suzuki India Ltd., and VinFast debut their EVs, while
China’s BYD and local heavyweights, Hyundai Motor India Ltd. and Tata Motors Ltd., will add to their existing
offerings. Tesla’s reluctance to enter India — it had registered a local unit more than four years ago — has
given competitors a headstart in the country’s nascent but rapidly expanding EV market. Maruti Suzuki — a
late-entrant to India’s EV market that has so far been dominated by Tata Motors — will introduce e-Vitara at
this show, an electric SUV jointly developed with Toyota Motor Corp. VinFast’s five-seater VF7 and bigger
SUV VF9 are among other new models that will be previewed at the auto show. - JPMorgan Chase posts record profit as the bank’s massive scale pays off
JPMorgan Chase on Wednesday posted record quarterly and annual earnings and revenue, reinforcing the
company’s status as the biggest and most profitable bank in U.S. history. Here’s what the company reported:
Earnings: $4.81 a share vs. $4.11 LSEG estimate; Revenue: $43.74 billion vs. $41.73 billion expected. The bank
said profit rose 50% to $14 billion in the fourth quarter as noninterest expenses fell 7% from a year earlier,
when the firm had a $2.9 billion FDIC assessment tied to regional bank failures. Revenue climbed 10% to
$43.74 billion, helped by Wall Street operations and better-than-expected net interest income of $23.47
billion, exceeding the StreetAccount estimate by almost $400 million. Shares of the bank rose 1.1% in
morning trading. JPMorgan was already the biggest American bank by assets when it won an auction to take
over First Republic out of Federal Deposit Insurance Corp. receivership in 2023. So while it paid the largest
FDIC assessment among its peers a year ago to shore up the deposit insurance fund, it was also a major
winner from the regional banking crisis, gaining even more deposits and assets in the tumult. Fixed income
trading revenue jumped 20% to $5 billion, topping the $4.42 billion StreetAcount estimate on rising credit
and currency results. Equities revenue climbed 22% to $2 billion, missing the $2.37 billion estimate
and underperforming the firm’s rivals at Goldman Sachs. Investment banking fees jumped 49% to $2.48
billion, topping the $2.39 billion estimate. CEO Jamie Dimon said in the release that the economy was
“resilient,” buoyed by low unemployment and healthy consumer spending, as well as optimism for the Trump
administration’s pro-growth agenda. “However, two significant risks remain,” Dimon said. “Ongoing and
future spending requirements will likely be inflationary, and therefore, inflation may persist for some time.
Additionally, geopolitical conditions remain the most dangerous and complicated since World War II. As
always, we hope for the best but prepare the firm for a wide range of scenarios.” - Goldman Sachs shares rise after topping estimates on strong trading results
Goldman Sachs on Wednesday posted fourth-quarter results that topped estimates on stronger-than
expected trading revenue. Here’s what the company reported: Earnings: $11.95 a share vs. $8.22 LSEG
estimate; Revenue: $13.87 billion vs. $12.39 billion expected. The bank said profit roughly doubled from a
year earlier to $4.11 billion, or $11.95 a share, as revenue grew while expenses shrank. Revenue jumped 23%
to $13.87 billion, helped by higher equities and fixed income trading revenue, and rising investment banking
results. Shares of the firm rose more than 5% in morning trading. Equities trading generated $3.45 billion in
revenue, roughly $450 million more than the StreetAccount estimate. Fixed income trading had $2.74 billion
in revenue, topping the estimate by almost $300 million. Investment banking fees of $2.05 billion essentially
matched the estimate. Another source of strength for the bank was its asset and wealth management
division, which saw revenue jump 8% to $4.72 billion, topping estimates by $560 million. “With an improving
operating backdrop and growing CEO confidence, we are harnessing the power of One Goldman Sachs to
continue to serve our clients with excellence and create further value for our shareholders,” CEO David
Solomon said in the release. Goldman Sachs has been riding a wave of enthusiasm over a rebound in Wall
Street deals. The bank’s shares jumped nearly 50% last year, topping its big bank rivals, as the Federal
Reserve’s easing cycle and the November election of Donald Trump boosted expectations for mergers and
stock deals. For Solomon, the setup couldn’t be more different than a year earlier, in the aftermath of a
strategic pivot away from an ill-fated foray into consumer finance. Back then, Solomon was under pressure to
appease internal stakeholders including Goldman partners as losses tied to consumer finance mounted, and
as Wall Street deals dried up because of rising rates and heightened regulatory scrutiny. JPMorgan Chase is
also reporting results Wednesday, along with Wells Fargo and Citigroup, while Bank of America and Morgan
Stanley are due to report on Thursday. - TSMC fourth-quarter results top expectations, net profit surges 57% on robust AI chip demand
Taiwan Semiconductor Manufacturing Company’s fourth-quarter revenue and profit beat expectations, as
demand for advanced chips used in artificial intelligence applications continued to surge.
Here are TSMC’s fourth-quarter results versus LSEG consensus estimates: Net revenue: 868.46 billion New
Taiwan dollars ($26.36 billion), vs. NT$850.08 billion expected; Net income: NT$374.68 billion, vs. NT$366.61
billion expected. TSMC’s revenue in the December quarter rose 38.8% from a year earlier, while net income
rose 57%. The firm had forecast fourth-quarter revenue between $26.1 billion and $26.9 billion. TSMC, the
world’s largest contract chip manufacturer, produces advanced processors for clients such
as Nvidia and Apple and has benefited from the megatrend in favor of AI. The company released its
December revenue last week, bringing its annual total to NT$ 2.9 trillion — a record-breaking year in sales
since the company went public in 1994. In 2025, the company faces some headwinds from U.S. export
controls on China and uncertainty surrounding the trade policy of President-elect Donald Trump, who has
threatened to impose broad tariffs and has also accused Taiwan of “stealing” the U.S. chip business.
Taiwan-listed shares of TSMC gained 81% in 2024 and were trading 3.75% higher on Thursday.
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