Asian Stocks Subdued, Dollar Dips Amid Thanksgiving Trading Lull

Asian markets traded cautiously on Thursday, with investors wary following US economic data that signaled stalled progress in reducing inflation, reported Ankur Banerjee for Reuters.

Sentiment was subdued ahead of the US Thanksgiving holiday. I Photo: SGX Group

The MSCI Asia-Pacific Index (excluding Japan) dipped 0.07%, while Japan's Nikkei gained 0.46%. Sentiment was subdued ahead of the US Thanksgiving holiday, which was expected to limit trading activity for the remainder of the week.

US data released Wednesday showed consumer spending in October exceeded expectations, but inflationary progress had stalled, raising uncertainty over the Federal Reserve's 2024 policy trajectory.

Adding to the caution, President-elect Donald Trump’s tariff rhetoric has sparked concerns about a potential trade war, further clouding the outlook. Analysts note that persistent inflation and the risk of tariffs could narrow the Federal Reserve’s scope for rate cuts in 2024, keeping markets on edge.