Newscasts - Asia Markets Briefing: Caution creeps in ahead of Fed and BoJ meetings
18/12/2024 09:00
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_mocuonmf&referenceId=1_mocuonmf&pageId=Newscasts Source: 'Reuters - Business videos' Description: Stocks across Asia were rangebound on Wednesday, as investors wait to hear comments from the U.S. Federal Reserve and Bank of Japan this week. Short Link: https://refini.tv/49Kv4MT Video Transcript: Caution creeps in ahead of the Fed and BOJ meetings. Welcome to Asia Markets Briefing. I'm Thomas Warner. Stocks across Asia were looking decidedly range bound on Wednesday. The Korean KOSPI was the notable exception, as it continues to bounce back from the martial law debacle. Chinese markets reacted well to government plans to run a higher budget deficit next year. But it’s Japan where the reelection is this week, investors in the NIKKEI kept their heads down ahead of Thursday’s rate decision from the BoJ, the outcome of which is far from certain. Money markets currently, but the chances of a rate-hike at just under 20%. So, well within the bounds of possibility. And there's apparently feverish debate within the bank, as to just how high the target rate should be for next year. We got the view of one analyst yesterday. First of all, our goal has been actually for like this week by the Bank of Japan. The reason is that looking at data inflation is a bit stronger than expected. Earnings came in a bit stronger than expected and also, we saw some improvement in GDP revisions. However, there has been some news and reports suggesting that. Yeah, there is a bit of kind of pushback against hiking a bit too early. So, generally starting to look more likely and markets indeed have a scale back. Those expectations for a hike. Well, let's stay in Japan for Wednesday’s biggest corporate story. The possible merger of Honda and Nissan sources say they're looking at setting up a holding company that they could use to explore deepening their cooperation. Honda and Nissan together would be a $54 billion company with an annual output of 7.4 million vehicles, making it the world's third-largest auto group by unit sales after Toyota and Volkswagen. Shares of Nissan closed nearly 24% higher in Tokyo trade on Wednesday, while shares of Honda, whose market value of $43 billion is more than four times bigger than Nissan, declined 3%. And another big Japanese corporate story, Bain Capital says that it plans to launch a $2 billion bid for Fuji Soft shares, even without the backing of Fuji’s board, that's if a rival bid from KKR fails. It potentially sets up a rare-hostile tussle between the two private equity giants. Neither the parties has been willing to comment. Looking ahead now and before that BOJ rate decision will be the verdict from the US Federal Reserve, it looks like the committee are almost certain to cut rates by another 25 basis points. So, attention will be on Chairman Powell's comments on the outlook for next year. And 2025’s also in-focus over in South Korea, the uncertainty over Trump's plans for nuclear talks with the North have prompted a statement from the foreign minister. Cho Tae-yul admitted that the martial law debacle had disrupted preparations for the new Trump presidency, but that the matter is now in hand. He's been drawing up a potential road map for talks between Washington and Pyongyang. And that's it for your Asia Markets Briefing