Asian stock markets opened in the red on January 13, 2025, extending declines as strong US jobs data fueled speculation about the Federal Reserve’s monetary policy trajectory. The hotter-than-expected payroll data led traders to reconsider the path ahead for the Fed’s upcoming meeting. Meanwhile, U.S. stock index futures also traded lower as Wall Street grappled with the implications of the labor market data, ahead of key inflation data and major bank earnings this week.
Market Performance Snapshot (Futures):
- Dow Future (US): 41,859, down 68.0 points (-0.16%)
- Nasdaq Future (US): 20,760, down 86.0 points (-0.41%)
- DAX Future (Germany): 20,332, down 17.0 points (-0.08%)
- FTSE Future (UK): 8,238, down 19.0 points (-0.22%)
- Hang Seng Future (Hong Kong): 18,800, down 315.0 points (-1.64%)
- Taiex Future (Taiwan): 22,587, down 471.0 points (-2.04%)
- Kospi (South Korea): 2,492, down 24.0 points (-0.99%)
- Gift Nifty (India): 23,325, down 174.0 points (-0.74%) (Adjusted)
The Hang Seng Index and Taiex registered the sharpest declines in the region, dropping 1.64% and 2.04%, respectively. South Korea’s Kospi also fell nearly 1%, reflecting broad-based weakness in Asian markets.
Key Focus Areas:
- US Jobs Data Impact: The stronger-than-expected payrolls data has reignited concerns over the Fed potentially maintaining or even increasing its hawkish stance, impacting global market sentiment.
- Upcoming Events: Investors are closely watching major bank earnings and key inflation data this week for further clues on the economic outlook and potential interest rate decisions.
- Broader Implications: With Asian markets under pressure, the focus remains on how central banks globally might react to evolving economic indicators.
Markets are expected to remain volatile as global economic data and earnings reports continue to shape investor sentiment in the near term.
Data as on January 13, 2025, between 7-7:45AM
