Dollar Soars as Asian Markets React to U.S. Record Close – What’s Next for Investors?

Bangkok, Thailand – Asian shares showed a mix of movements on Thursday following a record-breaking session for U.S. stocks. Oil prices saw an increase, while U.S. futures experienced a slight dip. The dollar remained strong against the Japanese yen and Chinese yuan, sparking concerns among regulators in Tokyo and Beijing.

In recent trading, the dollar rose to 151.37 yen from 151.30 yen, and the euro saw a slight slip to $1.0822 from $1.0828. The yen hit its lowest level since 1990, prompting Japanese officials to express their desire for stability in exchange rates. Market experts are closely watching for any potential currency market intervention by Japanese policymakers.

Amidst market fluctuations, Asian markets experienced various outcomes. The Nikkei 225 in Tokyo plummeted 1.2% to 40,283.44, while the Kospi in Seoul dipped 0.1% to 2,751.22. Conversely, Chinese markets saw some recovery, with Hong Kong’s Hang Seng index rising by 1.1% to 16,579.99, and the Shanghai Composite gaining 1.2% to 3,029.01. Australia’s S&P/ASX 200 also saw a jump of 0.9% to 7,887.00, while Taiwan’s Taiex remained relatively stable.

On Wall Street, the S&P 500 notched a 0.9% gain, closing at a record 5,248.49 after a three-day lull. The Dow Jones Industrial Average surged 1.2% to 39,760.08, and the Nasdaq composite saw a 0.5% increase to 16,399.52. Notable stock movements included a 5% climb for Merck following regulatory approval for a new treatment and a 14.2% rise for Trump Media & Technology Group.

Looking ahead, market focus is on the upcoming release of the latest U.S. consumer spending update, including crucial inflation data preferred by the Federal Reserve for shaping interest rates. As markets gear up for potential volatility due to the upcoming holiday closure, traders are closely monitoring economic indicators and central bank decisions for further market direction.