Asia markets diverge ahead of Fed cut hopes next week

December 04, 2025 (MLN):  Asian markets were uneven on Thursday, following gains on Wall Street fueled by rising expectations that the U.S. Federal Reserve may lower interest rates next week after weak employment data.

The softer labor data pushed traders to boost bets on an imminent rate cut, with the CME FedWatch tool indicating an 89% probability the Fed will ease policy at its December 9–10 meeting well above the levels seen just weeks prior, CNBC reported.

In Japan, the Nikkei 225 climbed 1.29%, while the Topix advanced 1.32%.

South Korea’s markets moved in the opposite direction, with the Kospi dropping 0.82% and the Kosdaq sliding 0.36%.

Australia’s S&P/ASX 200 was largely unchanged.

Hong Kong’s Hang Seng Index dipped 0.11% at the open, while mainland China’s CSI 300 edged up 0.23%.

In India, trading opened on a subdued note. The Nifty 50 was flat and the BSE Sensex slipped 0.14%. The Indian rupee weakened further, opening at a record low of 90.4 per U.S. dollar, marking its third straight day of setting a new all-time low.

Shares of IndiGo, India’s largest airline, dropped as much as 3% after a wave of flight cancellations that began earlier in the week.

The carrier attributed recent disruptions to factors including poor weather, heavier-than-usual air traffic, and updated crew rostering guidelines, according to Reuters.

Cancellations persisted into Thursday, with Bengaluru airport reporting 73 IndiGo flights scrapped for the day.

U.S. stocks pushed higher on Wednesday. The Dow Jones Industrial Average jumped 408.44 points (0.86%) to close at 47,882.90.

The S&P 500 added 0.30% to finish at 6,849.72, while the Nasdaq Composite rose 0.17% to settle at 23,454.09.

However, shares tied to the artificial-intelligence boom were among the biggest laggards.

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