Asian Stocks, Bonds to Drop as Fed Hike Bets Mount: Markets Wrap

Live updates

1. 1h ago

   Asian Markets Split as Fed Hike Bets Clash With Oil Relief

   Asian equities are mixed Friday as investors weigh rising Federal Reserve tightening expectations against easing Middle East tensions. Japanese and Hong Kong benchmarks slipped while Korean chipmakers gained on CoreWeave's strong earnings. Treasury yields climbed across the curve after hot U.S. inflation data fueled bets on a larger Fed rate hike. Oil prices retreated on signals of potential de-escalation in the Iran-Israel conflict, providing a floor for risk sentiment. Nvidia shares fell on reports of a CEO investigation, bucking the broader tech rebound.

   Why it matters

   Markets are caught between two powerful crosscurrents: persistent U.S. inflation that could force the Fed into more aggressive tightening, and geopolitical relief that has pulled crude off recent highs. The inflation scare hit bonds hard globally, lifting yields and pressuring equity valuations. Meanwhile, the AI infrastructure trade remains a key driver for Asian tech, with CoreWeave's beat lifting chip-related names even as Nvidia faces idiosyncratic headwinds.

   What is confirmed

   • Asian equities were mixed Friday with Japan and Hong Kong lower while Korean chipmakers rose.
   • U.S. Treasury yields climbed after inflation data increased expectations for Federal Reserve rate hikes.
   • Oil prices fell on hopes for resolution of the Iran-Israel conflict.
   • CoreWeave reported Q3 revenue above estimates and raised its full-year outlook.
   • Nvidia shares declined on reports of an investigation into its CEO.

   Still unconfirmed

   • Iran's supreme leader signaled openness to peace talks after the Ras Tanura attack.

   What to watch next

   • Next U.S. CPI and PPI releases for inflation trajectory
   • Fed officials' speeches ahead of the December FOMC meeting
   • Developments in Iran-Israel diplomatic channels
   Sources used for this update (19)

   1. www.mitrade.com — Weekly Market Wrap: AI spending hit a reality check — and Starlink rewrote the telecom trade
   2. www.zerohedge.com — Futures Rise, Oil Slides As Iran's Supreme Leader Talks Peace And Shrugs Off Ras Tanura Attack
   3. WSJ — Asian Equities Mostly Rebound, Though Sentiment Remains Fragile
   4. CNN — Nvidia stock falls after investigation into CEO, bucking market rally
   5. CNBC — SoftBank Group shares surge 11% as Asian tech stocks track Wall Street rebound
   6. WSJ — Asian Stocks Rise, Oil Eases on Hopes for Iran Conflict Resolution
   7. CNBC — Stocks moving the most midday: Microsoft drops suddenly on Anthropic threat to Office
   8. Yahoo Finance — CoreWeave stock pops as Q3 revenue beats estimates, company raises full-year outlook
   9. Barron's — CoreWeave Earnings Beat Expectations, Assuaging Market Nervousness
   10. Reuters — Bonds reel as hot inflation fuels jumbo Fed hike fears
   11. Bloomberg.com — Asian Stocks, Bonds to Drop as Fed Hike Bets Mount: Markets Wrap
   12. Yahoo Finance — Asian stocks climb as sliding oil prices buoy sentiment
   confidence 82%