ASIA MARKET OPEN: INVESTORS EYE BULL RUN EXTENSION AMID GLOBAL MONETARY EASING WAVE

ASIA MARKET OPEN: INVESTORS EYE BULL RUN EXTENSION AMID GLOBAL MONETARY EASING WAVE
Asia opens the final trading week of 2024 with key China data due on Monday, setting the stage for a dynamic close to the year.
Global monetary easing: Central banks worldwide are cutting rates, supporting investor optimism and extending the equity bull run.
Geopolitical risks: South Korea faces political volatility after President Yoon’s impeachment, which could impact the South Korean won slightly.
China's economic challenges: Despite promises for economic stimulus, Chinese equities are facing market uncertainty, particularly in retail and property sectors.
Japan’s policy stance: The Bank of Japan is diverging from global easing trends, unlikely to raise rates amid currency devaluation concerns and US tariff strategies.
US-China trade concerns: Potential yuan devaluation amid anticipated US tariffs is in focus, which could lead to a weaker yuan (USDCNH above 7.35).
FX market shifts: Dollar selling expected due to year-end flows, with possible EUR/USD uptick due to year-end FX rebalancing.
US Federal Reserve: The Fed is expected to trim rates at the year-end FOMC meeting amid cooling inflation, slower job growth, and potential changes in US trade policies.