Asia-Pacific markets trade mostly rise, defied the selloff on Wall Street overnight as China's pledge of more proactive fiscal measures and looser monetary policy next year, which could revive economic growth and boost energy demand. Meanwhile, investors continued to monitor ongoing political instability in South Korea. On Monday, the prime minister of ousted Syrian President Assad agreed to hand power to the rebel-led Salvation Government, a day after the rebels captured the capital. The rebels were in the process of establishing a new government, with the country’s banks and oil sector set to resume operations on Tuesday. Japan ( NKY:IND ) rose +0.40% to surpass 39,200, while the broader Topix Index rose 0.4% to 2,745 on Tuesday, extending gains from the previous session. The Japanese yen weakened past 151 per dollar on Tuesday, hitting its lowest point in over a week, amid ongoing uncertainty about the timing of the next Bank of Japan interest rate hike. Domestically, investors are eyeing business sentiment data later this week to assess the health of the Japanese economy. China ( SHCOMP ) rose +0.98% rallied on Tuesday, with the Shanghai Composite and Shenzhen Component indexes both jumping over 1%, following a pledge from China’s Politburo to implement "more proactive" fiscal measures and a "moderately" looser monetary policy next year to boost economic growth. The offshore yuan strengthened further to around 7.25 per dollar. The announcement , which came in an official readout late on Monday after market hours, also highlighted the government's focus on expanding domestic demand and stimulating consumption. China's trade surplus surged to USD 97.44 billion in November 2024 from USD 69.45 billion in the same period a year earlier, surpassing expectations of USD 95 billion, marking the largest trade surplus since June, as exports grew while imports fell. Traders are now turning their attention to this week’s Central Economic Work Conference, where China is expected to outline its economic priorities and provide policy guidance on a 2025 stimulus package. Hong Kong ( HSI ) rose +0.46% to 20,717 in Tuesday morning trade, surging for the third session and reaching its highest level in a month. India ( SENSEX ) rose +0.18% to 81,570 in morning trade on Tuesday, ending losses from the prior two sessions, as traders welcomed China's signal of more aggressive stimulus measures next year to spur economic growth. Australia ( AS51 ) fell -0.36% slipped 0.3% to below 8,400 on Tuesday. The Australian dollar weakened past $0.64 on Tuesday, reversing gains from the previous session after the Reserve Bank of Australia kept its policy rate unchanged at 4.35% for the ninth consecutive meeting, as widely expected. Meanwhile, recent figures showed a sharp decline in Australian business confidence for November. The South Korean won ( USD:KRW ) stabilized at 1,428 per dollar after hitting a more than two-year low in the previous session, buoyed by optimism surrounding economic stimulus from China, South Korea’s largest trading partner. In the U.S., on Monday, all three major indexes ended in red as Nvidia shares dropped amid a Chinese antitrust investigation and investor caution ahead of a critical inflation report. U.S. stock futures were little changed on Tuesday after the S&P 500 and Nasdaq Composite retreated from record highs, weighed down by a sharp decline in Nvidia: Dow -0.01% ; S&P 500 -0.05% ; Nasdaq -0.14% . Meanwhile, traders awaited U.S. inflation data due later this week for more clues on the Federal Reserve's next policy move. Investors are also eyeing monetary policy decisions from central banks in Australia, Canada, and Switzerland this week, which could add further volatility to global markets. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China's trade surplus largest in 5 months; exports slow while imports fall amid trade uncertainties Chinese fintech stocks surge after China signals looser monetary policy Reserve Bank of Australia holds cash rate steady at 4.35%, adopts mildly dovish stance China's consumer inflation falls below forecasts, drops to a five-month low in November South Korea to infuse additional capital to stabilize markets
