China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
The Australian bonds slumped during Asian session Wednesday amid a muted trading session that witnessed data of little economic significance ahead of the country’s employment report for the month of November, scheduled to be released on December 19 by 00:30GMT for further direction into the debt market.
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, jumped 4 basis points to 1.201 percent, the yield on the long-term 30-year bond surged 4 basis points to 1.808 percent and the yield on short-term 2-year gained 3 basis points to 0.781 percent by 04:30GMT.
Global stocks extended its gain on Tuesday despite renewed concerns about hard Brexit risk. US data remained supportive of risk sentiment. US housing starts rose 3.2 percent in November to a seasonally adjusted 1.365 million beating market expectation. Meanwhile, October housing data was also revised higher, OCBC Treasury Research reported.
In addition, US industrial production also rose by stronger than expected 1.1 percent m/m after falling by 0.9 percent m/m in October. The US housing market has regained the momentum since the Fed cut its interest rate three times, the report added.
This is likely to further support the near term growth outlook. As a result of upbeat data, both Dallas Fed President Kaplan and Boston Fed President Rosengren said there is no need to cut interest rate further in the near term unless the macro outlook deteriorates.
The Australian dollar was also under pressure as the minutes of its December policy meeting showed that the central bank remained open to another rate cut as early as Feb 2020 due to concerns about weak wage growth, OCBC further noted in the report.
Meanwhile, the S&P/ASX 200 index edged tad 0.32 percent higher to 6,794.00 by 04:35GMT.
