European Stock Futures Fall Alongside Their Asian Rivals – Asia Market Wrap

European market futures and Asian shares tumbled as strong US growth statistics clouded the outlook for upcoming Fed rate reduction. The Yen rose following the BoJ’s rate decision.

Euro Stoxx 50 futures dipped 0.5%, while US contracts also declined. The Dollar was steady but on track for its highest monthly performance since September 2022. Treasuries rose.

Shares in Japan, Australia, and South Korea fell, pulling on a regional stocks index, which was on track for its worst monthly performance since August 2023. Mainland Chinese shares were neutral, but Hong Kong stocks climbed, as investors digested a report indicating that monthly Chinese manufacturing data had expanded for the first time since April.

The BoJ held its benchmark interest rate constant as concerns about the economy’s outlook and government stability grew following the ruling coalition’s worst political showing since 2009. The Yen rose below 153 Per dollar.

Traders reduced their expectations on Fed policy easing as statistics indicated that the US economy expanded at a strong pace in the third quarter, aided by rising household purchases and defence spending. A measure of underlying inflation increased 2.2%, roughly in line with the Fed’s aim.