Stocks Fall as Rate Cut Bets Weaken, Copper Surges – Asia Market Wrap

Asian markets fell after Wall Street losses, as new data undercut the case for anticipated Federal Reserve interest rate reduction. Copper has risen to its highest level in 11 months.

Equity benchmarks in Australia and South Korea declined, while those in Hong Kong sank roughly 2%. Mainland Chinese shares also fell as the People’s Bank of China held its one-year policy loan rate unchanged at 2.5% and drained liquidity from the banking sector for the first time since November 2022.

Copper, long regarded as a barometer of the world economy, soared to $9,000 per tonne on expectations that an increase in global manufacturing activity will boost demand for industrial metals.

Japanese stocks outperformed the area. The nation’s largest union group will reveal the most widely watched salary data in decades later this Friday. Some anticipate that strong results will encourage the Bank of Japan to raise interest rates for the first time since 2007, when it meets next week.