Asian Equities Edge Higher Amid Fed Rate Cut Expectations

Asian stock markets opened mostly higher on Monday, recovering from previous losses as traders reacted to regional economic data and positive cues from the US market. The general sentiment is largely driven by anticipation of a Federal Reserve interest rate reduction. According to the CME FedWatch tool, there is currently a 66% probability of a 25-basis point cut in December, compared to a 34% chance of a pause. In Australia, the S&P/ASX 200 rose 0.17% to 8,450.70. While iron ore miners and financial stocks provided support, gold miners showed mixed results. A standout corporate event saw De Grey shares surge nearly 29% following a $5 billion acquisition agreement with Northern Star Resources, which also impacted Gold Road Resources positively. In Japan, the Nikkei 225 edged up 0.03% to 38,220.01. Gains in the technology and financial sectors were offset by declines in heavyweights such as SoftBank Group and Fast Retailing, though automakers like Toyota and Honda saw modest gains. On the macroeconomic front, Australian manufacturing data showed a slight improvement. The latest S&P Global survey revealed a manufacturing PMI score of 49.4 for November, up from 47.3 in October. Despite the improvement, the figure remains below the 50.0 threshold, indicating that the sector continues to contract.