Asian equities moved mostly higher on Thursday, while European markets were steady as U.S. traders broke for the Thanksgiving holiday. A new Federal Reserve survey underscored persistent weaknesses in the American labor market, reinforcing bets that policymakers may deliver another interest rate reduction in December. Meanwhile, Chinese real estate shares fell on renewed debt concerns, and Bitcoin pushed back above the $91,000 mark.
Asian Markets Gain Momentum
Stocks across Asia advanced, extending Wall Street’s latest upswing as investors rotated into tech names on expectations of an upcoming Fed rate cut.
The Shanghai Composite rose on hopes that Beijing will deploy fresh stimulus in response to the deepening property market slump. Japan’s Nikkei added 1.3%.
The upbeat tone followed a fourth straight day of gains for the major U.S. benchmarks on Wednesday. With American markets shut for Thanksgiving and set for a shortened session Friday, trading volumes in Asia and Europe were lighter.
In early European action, the STOXX 600 hovered near the flatline. The FTSE 100 dipped 0.1%, Germany’s DAX gained 0.4%, and France’s CAC 40 was largely unchanged.
Beige Book Reveals Labor Market Fragility
The Federal Reserve’s latest “Beige Book” release offered a cautious view of hiring trends. According to the report, “despite an uptick in layoff announcements, more Districts reported contacts limiting headcounts using hiring freezes, replacement-only hiring, and attrition than through layoffs.”
Businesses, the Fed noted, continue to wrestle with uncertainty driven in part by sweeping U.S. tariffs. The central bank cited “multiple reports of margin compression or firms facing financial strain stemming” from these trade policies.
With labor conditions weakening, the Fed opted for rate cuts in both September and October in an effort to support investment and employment.
Chinese Property Stocks Lose Ground
The property sector in China retreated after China Vanke disclosed plans to restructure part of its debt, reigniting anxiety about the health of the long-struggling real estate market.
Vanke’s shares in Shenzhen slid more than 7%, echoing declines in the firm’s bond prices. Other major developers listed in Hong Kong — including Sunac, Shimao, New World Development, and Longfor — fell by between 0.5% and 7%.
Vanke announced late Wednesday that it will seek approval to delay repayment of a 2 billion yuan ($282.6 million) onshore bond, a move that intensified concerns that another major default could be looming.
If Vanke falters, it would mark the most significant blow to China’s property market since the collapses of Evergrande and Country Garden.
Oil Prices Stay Quiet
Oil continued to trade with little direction as European markets opened, following data that showed U.S. crude inventories jumping far more than expected. Separately, a Washington-sponsored peace initiative on Ukraine raised speculation about increased Russian supply returning to the market.
At 03:33 ET, January Brent futures dipped 0.1% to $62.49 a barrel, while West Texas Intermediate hovered near $58.63.
Both benchmarks had rallied more than 1% on Wednesday as expectations for a December Fed rate cut lifted sentiment across commodities.
Bitcoin Reclaims the $91,000 Level
Bitcoin rallied sharply, clearing the $91,000 threshold as growing conviction about lower U.S. interest rates boosted demand for risk assets.
The world’s largest cryptocurrency traded 4.5% higher at $91,305.5 by 03:33 ET.
After sinking to roughly $80,000 last Friday — its weakest reading since April — Bitcoin has staged a significant rebound.
Markets now assign an 85% probability to a quarter-point Fed rate cut next month, up from 44% only a week earlier, providing a strong tailwind for crypto prices.