Asian equities are on track for their best year since the pandemic
US stocks were mixed-to-positive in light trading on Thursday. The S&P 500 finished just 0.04% higher to settle within striking distance of its all-time high. The Dow Jones rose 0.14% and the Nasdaq Composite slipped 0.03%. All major indexes are on pace to finish the year with solid gains. The Dow and the S&P are poised to finish higher by nearly 13.8% and 24.6%, respectively. The tech-heavy Nasdaq climbed more than 44% to see its best year in twenty years.
In Asia, stocks were mixed on the last trading day of the year, snapping their two-year losing streak as investors turned more upbeat amid the expectations that the Federal Reserve will start cutting interest rates next year. Regional equities are on track for their best year since the pandemic. MSCI’s broadest index of Asia-Pacific shares outside Japan saw a 5% gain in the year after two years of heavy losses. China’s Shanghai Composite gained 0.68% during the session after Huawei said it expected 2023 revenue to grow by 9%. Japan’s Nikkei 225 gave up 0.45% on Friday to gain 28% this year.
European stocks started the final session of the year on positive footing. The regional Stoxx 600 index was up 0.18% in early deals, with nearly all sectors in the green. On the data front, Spain’s December preliminary CPI came in at +3.1% versus +3.2% y/y expected. Core annual inflation eased further to 3.8%, down from 4.5% in November. For the year, Germany’s DAX 30 has risen nearly 20%, while France’s CAC 40 and the U.K.’s FTSE 100 have gained 16.3% and 3.64%, respectively.
Meanwhile, the USD index saw fresh July lows around 100.60 before bouncing on Thursday. The greenback climbed back above the 101.00 handle, but failed to extend recovery on Friday, hovering near a five-month low and heading for a yearly decline. The yield on the 10-year Treasury rose to 3.82%, but stayed near the lowest levels since July. Fresh US data showed that that there were 218,000 initial jobless claims last week and pending home sales were unchanged on a monthly basis in November. In general, currency markets remain relatively calm on the last trading day of the year in thin trading conditions ahead of the long weekend.
