As Investors Reduce Risk Before Year-End as Stocks Decline – Asia Market Wrap

As investors reduced their holdings due to uncertainty as the year came to a close, Asian stocks declined while US and European market futures slightly declined.

As stocks fell in China, Japan, and Australia, the MSCI Asia Pacific Index ended a five-day rally. 10-year rates fell from almost their highest levels since May as treasuries increased. Due to the Christmas season, trading was comparatively low throughout the region.

According to data, trading volumes for Japanese stocks were 17% lower than their 30-day average, while those in Australia were 51% lower. Monday is the final trading day for Japanese financial markets for the year, with public holidays from Tuesday to January 6.

While Asian markets are mostly lower on Monday, they remain on track for a good year. The MSCI Asia Pacific index has risen 7.6% in 2024, as central banks loosened monetary policy and tech firms gained on excitement about artificial intelligence.

Treasury 10-year rates fell two basis points to 4.61%, after reaching 4.64% last week. Yields rose this month after the Fed indicated that there will be fewer interest rate reduction in 2025.