Asia stocks muted as Trump rally cools; Fed, China stimulus in focus

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Asia stocks muted as Trump rally cools; Fed, China stimulus in focus

Investing.com-- Most Asian stocks moved in a flat-to-low range on Thursday as a rally on the back of Donald Trump winning the 2024 U.S. election now cooled, with focus turning to more stimulus measures in China and an upcoming Federal Reserve meeting.

A meeting of China’s National People’s Congress, which began earlier this week, is now in focus for more cues on fiscal stimulus. U.S. stock index futures steadied in Asian trade, with investors looking to the conclusion of a Fed meeting later on Thursday for more cues on interest rates.Chinese markets have so far remained resilient despite the implications of a Trump presidency, given that Trump has vowed to impose a 60% trade tariff on all Chinese imports.

Focus this week is squarely on the NPC meeting, where Beijing is widely expected to outline plans for more fiscal spending to support the economy. An announcement is expected to be made at the conclusion of the meeting on Friday.The yen was battered by a stronger dollar, with the Japanese currency hitting its weakest level in three months as the greenback surged. Markets expect a wide interest rate differential between Japan and the U.S. to persist under a Trump presidency.

 

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