Asian equities traded mixed on Wednesday as fresh US labour market data failed to revive expectations for another interest rate cut next month, while oil prices climbed following President Donald Trump’s order to block sanctioned Venezuelan tankers.
Investor sentiment across the region remained cautious after Federal Reserve officials signaled they were unlikely to lower borrowing costs for a fourth consecutive policy meeting. Lingering concerns over elevated technology valuations and the pace of returns from heavy investment in artificial intelligence continued to weigh on risk appetite.
Markets had been focused on the delayed release of key US non-farm payrolls data. Figures showed the unemployment rate rose to 4.6 percent in November, its highest level in four years, reinforcing perceptions that the labour market is gradually cooling.
However, the details of the report muted expectations for policy easing. October payrolls recorded a sharper-than-expected decline of 105,000 jobs, largely attributed to the prolonged US government shutdown, with many of those positions expected to return. November job growth of 64,000 exceeded forecasts, offsetting concerns of a rapid slowdown.
Analysts said the data was insufficient to shift expectations around Federal Reserve policy. Bloomberg reported markets were pricing in only a 20 percent chance of a rate cut at the next meeting.
“The steady drift higher in unemployment speaks to the Federal Reserve’s concerns about labour market conditions,” said Taylor Nugent, senior economist at National Australia Bank. “But it is unlikely to be enough on its own to justify further near-term easing.”
Wall Street investors showed little reaction to the figures, with broader focus remaining on whether the technology-led rally of recent years has stretched valuations beyond sustainable levels.
In Asia, Tokyo, Seoul, Taipei, Manila, and Jakarta posted gains, while Hong Kong and Shanghai ended flat. Sydney, Singapore, and Wellington recorded modest declines as investors stayed on the sidelines.
Oil prices rose more than one percent after Mr. Trump announced a “total and complete” blockade of sanctioned oil tankers entering or leaving Venezuela, escalating pressure on the government of President Nicolás Maduro. The move follows months of increased US military activity in the Caribbean under the banner of counter-narcotics operations.
The gains helped oil recover some losses from the previous session, when prices slid on optimism that a potential end to the war in Ukraine could eventually ease sanctions on Russian crude and add to global supply.
Read Also: Venezuela Condemns U.S. Oil Blockade As ‘Irrational’
In currency markets, the yen strengthened against the dollar ahead of an expected Bank of Japan interest rate increase later this week.
In corporate news, Chinese chipmaker MetaX Integrated Circuits Shanghai surged more than 550 percent in its market debut, continuing a recent run of explosive IPO performances in China’s semiconductor sector.
