Asian equities pushed higher on Thursday, while European indices were largely steady, as U.S. exchanges prepared to close for the Thanksgiving holiday. A new economic snapshot from the Federal Reserve highlighted ongoing worries about the American labor market, strengthening investor expectations that the central bank will deliver another rate reduction in December. Chinese real estate shares slid following fresh debt restructuring moves by a major developer, and Bitcoin climbed back above the $91,000 threshold.
Asian Markets Push Higher
Most major Asian indices traded in positive territory, building on Wall Street’s continued rebound as investors rotated back into technology names on growing belief that the Federal Reserve will opt for a rate cut next month.
China’s Shanghai Composite benefited from speculation that Beijing may roll out additional stimulus, with policymakers once again facing mounting pressure over the deepening property downturn in the world’s second-largest economy. Japan’s Nikkei gained 1.3%.
Asian markets broadly took their cue from U.S. benchmarks, which extended their rally for a fourth straight session on Wednesday. With U.S. markets closed for Thanksgiving and only a shortened session scheduled for Friday, regional participants turned their focus to local catalysts.
In Europe, early trading was subdued. The STOXX 600 hovered around flat, the FTSE 100 inched down 0.1%, Germany’s DAX added 0.4%, and France’s CAC 40 was little changed.
Beige Book Flags Labor Market Weakness
Fresh commentary from the Federal Reserve offered a pessimistic read on hiring conditions. In its latest “Beige Book” — a roundup of business and household sentiment published ahead of policy meetings — the central bank reported that “despite an uptick in layoff announcements, more Districts reported contacts limiting headcounts using hiring freezes, replacement-only hiring, and attrition than through layoffs.”
Firms continue to wrestle with uncertainty as 2025 unfolds, much of it tied to questions about the impact of wide-ranging U.S. tariffs. The Fed noted “multiple reports of margin compression or firms facing financial strain stemming” from the levies.
This strain has filtered into employment trends, prompting the Fed to cut interest rates in both September and October in an effort to support investment and potentially revive hiring.
Chinese Property Shares Slide
Chinese real estate stocks retreated after news that China Vanke planned to restructure part of its debt, reigniting fears of deeper instability in the ailing property sector.
Vanke’s Shenzhen-listed shares lost more than 7%, mirroring weakness in its bond prices. Several Hong Kong–listed developers — including Sunac China Holdings Ltd, Shimao Property Holdings Ltd, New World Development Co Ltd, and Longfor Properties Co Ltd — also slipped between 0.5% and 7%.
The developer said late Wednesday that it would seek bondholder consent to delay repayment on a 2 billion yuan ($282.6 million) onshore bond, intensifying anxiety around the mounting debt crisis across China’s property landscape.
If Vanke were to falter, it would represent the sector’s largest setback yet, following major defaults from Evergrande and Country Garden in recent years.
Oil Prices Flat
Oil traded quietly in Europe after data revealed a bigger-than-expected jump in U.S. crude inventories. Meanwhile, momentum around a Washington-backed Ukraine peace proposal raised expectations of additional Russian supply returning to the market.
By 03:33 ET, Brent crude futures for January delivery slipped 0.1% to $62.49 per barrel, while West Texas Intermediate (WTI) hovered near $58.63.
Both benchmarks gained more than 1% on Wednesday as traders increased their bets on a December Fed rate cut — a shift that typically boosts oil prices.
Bitcoin Rebounds Above $91,000
Bitcoin strengthened on Thursday, climbing back above $91,000 as renewed confidence in a near-term Fed rate cut fuelled demand for risk assets.
The leading cryptocurrency traded 4.5% higher at $91,305.5 by 03:33 ET. After dipping to around $80,000 last Friday — its lowest point since April — Bitcoin has sharply reversed course.
Futures markets now imply roughly an 85% probability of a quarter-point rate reduction in December, up from 44% a week earlier. Lower interest rates tend to benefit speculative assets, giving Bitcoin fresh tailwinds.
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