Asian stock markets are mostly higher on Monday, buoyed by positive cues from Wall Street and a rebound from last week’s pullback. Traders are optimistic about a potential interest rate cut by the U.S. Federal Reserve in December, with the CME FedWatch tool indicating a 66% probability of a quarter-point reduction. The Australian market is leading the gains, with the S&P/ASX 200 index up 0.17%, driven by strong performances in iron ore and financial stocks, despite some weakness in gold miners.

The mixed performance of sectors reflects broader economic signals, including a contraction in Australia’s manufacturing sector, which reported a PMI score of 49.4 for November. Additionally, retail sales data showed a 0.6% month-over-month increase, exceeding expectations. In Japan, the Nikkei 225 index is slightly higher, though major exporters face mixed results amid ongoing contraction in the manufacturing sector.

Market professionals should note the potential for increased volatility as traders react to upcoming economic data and central bank decisions. The focus on interest rates and sector-specific performance may present both risks and opportunities in the near term.

Source: nasdaq.com