Equities saw modest gains on Wednesday, even as US jobs data failed to boost expectations for an interest rate cut next month, while oil prices surged following President Donald Trump’s announcement of a total blockade on Venezuelan tankers.
Investors remained cautious after Federal Reserve officials signaled they were unlikely to lower borrowing costs for a fourth consecutive meeting. Concerns over stretched tech valuations and the pace of AI-related spending also weighed on sentiment.
Attention turned to the delayed non-farm payrolls reports, which showed November’s unemployment rate rising to 4.6 percent—a four-year high—highlighting a cooling US labor market. Analysts noted that the October jobs decline of 105,000 was largely due to the extended government shutdown, with many workers expected to return. November’s increase of 64,000 jobs exceeded estimates.
Market reactions to the data were muted, with Bloomberg reporting only a 20 percent chance of a rate cut in the coming month. “The rise in unemployment underscores the Fed’s caution, but it’s unlikely to trigger near-term easing,” said Taylor Nugent, senior economist at National Australia Bank.
Wall Street remained mostly indifferent, with investors wary that the tech-driven rally of the past two years may have outpaced realistic returns on AI investments.
Asian markets showed mixed performance Wednesday. Tokyo, Hong Kong, Shanghai, Seoul, Manila, Bangkok, and Jakarta posted gains, while Sydney, Singapore, Taipei, Mumbai, and Wellington slipped. London’s FTSE 100 rose after UK inflation slowed more than expected, with Paris and Frankfurt also edging higher.
Oil prices jumped more than 1 percent following Trump’s announcement on Truth Social of a “TOTAL AND COMPLETE BLOCKADE OF ALL SANCTIONED OIL TANKERS” heading into or out of Venezuela. The move escalates Washington’s pressure on Caracas and leftist leader Nicolas Maduro, while raising concerns over crude supply in global markets.
Currency markets saw the yen strengthen against the dollar ahead of a likely Bank of Japan rate hike, while the Indian rupee gained 1 percent after central bank intervention, rebounding from record lows.
In corporate news, Chinese chipmaker MetaX Integrated Circuits Shanghai soared over 550 percent on its market debut, raising $585.8 million, following similar first-day gains from Moore Threads. Conversely, Hong Kong cryptocurrency exchange HashKey dipped 2 percent after raising $205 million in its IPO.
Key Market Figures:
- Tokyo Nikkei 225: +0.3% at 49,512.28
- Hong Kong Hang Seng Index: +0.9% at 25,468.78
- Shanghai Composite: +1.2% at 3,870.28
- London FTSE 100: +0.8% at 9,759.85
- Dollar/Yen: 155.50, down from 154.80
- Euro/Dollar: $1.1712, down from $1.1747
- Pound/Dollar: $1.3324, down from $1.3422
- WTI Crude: $56.13/bbl, up 1.6%
- Brent Crude: $59.81/bbl, up 1.5%
- New York Dow: -0.6% at 48,114.26
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