Investing.com – Asian stocks were broadly subdued on Thursday as trading remained weak and major stock indexes were closed for holidays, while Japanese stocks rose after a report showed Japan plans a record budget for the coming fiscal year.
Stock markets in Indonesia and Hong Kong were closed for Christmas, while markets in Australia and New Zealand were closed on Thursday for Boxing Day.
U.S. stock index futures were largely stable in Asian trading on Thursday.
Asian markets posted losses in recent sessions after the Federal Reserve announced a slower pace of interest rate cuts in 2025 – a scenario that bodes poorly for risk-on assets.
Japanese Stocks Jump on Record Budget Plans; firmer rate hike bets
Japan’s index rose nearly 1% on Thursday, while the country gained 0.6%.
The Japanese government is preparing a record $735 billion budget for the fiscal year starting in April, driven by rising social security and debt service spending, according to a draft obtained by Reuters.
The 115.5 trillion yen budget proposal comes as the Bank of Japan is moving away from its decade-long stimulus program, increasing pressure on the government to take a larger role in supporting the economy.
BOJ Governor Kazuo Ueda said on Wednesday that the economy is expected to make progress toward sustainably meeting the central bank’s 2% inflation target next year, hinting that a rate hike could be imminent.
However, he stressed the importance of carefully assessing the impact of uncertainties on the global economy, particularly the policies of the new US administration under President-elect Donald Trump.
Chinese stocks weakened despite new economic stimulus
China’s and indices remained largely unchanged.
As Reuters reported on Tuesday, Chinese authorities have decided to issue a record 3 trillion yuan ($411 billion) of special government bonds next year as they step up fiscal efforts to stimulate a struggling economy.
In addition, China is allowing local officials to expand investments with key government bonds and simplify approvals by allowing projects as long as they are not restricted by a list published by the Cabinet to better use public funds for economic growth, according to a government document on Wednesday.
Markets were waiting for more clarity on Beijing’s stimulus plans next year. According to recent reports, the country will increase government spending to support economic growth.
Elsewhere, equity markets saw only minor moves amid weak trading.
South Korea’s was largely unchanged, while Thailand’s was also subdued.
Singapore’s index fell 0.2% while India’s index pointed to a weak opening as the index has suffered steep losses in recent weeks.
