Asian stocks weaken: Uncertainty deepens with the impact of Trump's policies and FED's movements, NVIDIA's financial report affects the AI frenzy.

Asian stocks opened lower on Monday (11/18), as the possibility of the Federal Reserve (FED) slowing down interest rate cuts and the potential impact of Trump's policies on inflation. The Japanese and Australian stock markets fell, while the South Korean market rose against the trend as Samsung announced stock buybacks.

Asian stock markets weaken, FED may postpone rate cut

According to Bloomberg, Asian stock markets generally fell at the opening, with Japan and Australia's stock markets experiencing the most significant declines, while the South Korean stock market rose against the trend due to Samsung's $7.2 billion stock buyback plan.

With the US consumer price index (CPI) rising by 2.6% in October, slightly higher than the previous month's 2.4% but still within a reasonable range. The monthly increase rate is 0.2%, similar to the previous months, indicating stable price growth. However, the market is still concerned that the Federal Reserve (FED) may pause its rate cuts in December.

Although Fed Chairman Powell previously hinted that there is no intention to cut interest rates in the short term, some scholars point out that the Fed may still cut interest rates before the end of the year, but the probability has now decreased. Especially with Trump's new round of tax and tariff policies, inflation may rise in the coming years, further slowing down the pace of Fed interest rate cuts.

(Fed Chairman's hawkish remarks cool the cryptocurrency market, BTC falls 2%)

The dollar fell slightly, and oil prices weakened due to a decline in Chinese demand

After seven consecutive weeks of gains, the US dollar dropped slightly on Monday but still remained strong. Asian stocks fell nearly 4% last week, marking the worst performance in nearly six months, due to strong US economy, a strong US dollar, and concerns about the Chinese economy.

In addition, oil prices continue to be weak, mainly affected by the decline in Chinese demand and market oversupply. In terms of international situation, Ukrainian President Volodymyr Zelenskiy is facing pressure from allies to seek an end to the war with Russia. The United States is also considering whether to relax restrictions on Ukraine's use of Western weapons, which may escalate conflicts with Russia.

The Bank of Japan remains open to rate hikes, with China and Indonesia focusing on the economy and exchange rates

Bank of Japan Governor Haruhiko Kuroda said that the economy and prices will be key factors in determining the timing of the next policy adjustment, and he is open to the timing of the next interest rate hike. Some experts also believe that the yen may still face depreciation pressure against the US dollar in the short term, but if the Exchange Rate approaches 160 (154 at the time of submission), the market may be more concerned that the government will intervene to stabilize the Exchange Rate.

On the other hand, the Bank of China is expected to maintain the Loan Prime Rate (LPR) unchanged this week, focusing on internal economic stability. While the Central Bank of Indonesia may take stabilization measures regarding the Indonesian Rupiah approaching the market threshold of 16,000, focusing on exchange rate stability to prevent external risks.

The inflation data in the UK and Europe is closely related to NVIDIA's financial report, which has intensified market uncertainty.

This week, the inflation data of the UK and the EU is also a focus of market observation, and investors hope to judge the future policy direction of the Central Bank of the UK and the Central Bank of Europe through this. At the same time, NVIDIA's financial report announcement on November 22nd in Taiwan time will also become a key test of whether the AI concept stock boom can continue. The global market is currently facing inflationary pressure and increased policy uncertainty, especially the impact that Trump's policies may bring. Investors need to actively follow international policies and economic developments and invest cautiously.

This article Asian stocks are weakening: Trump's policy impact and FED's trend exacerbate uncertainty, NVIDIA's financial report affects the AI ​​boom first appeared on Chain News ABMedia.