Asian Markets Up on Weaker U.S. Retail Data; Fed Rate Cut Outlook Intensifies

Asian shares edged higher on Wednesday as U.S. retail sales for December, released Tuesday, showed weaker holiday spending, sending Wall Street mixed and weighing on expectations for Federal Reserve policy. U.S. futures and Treasuries moved higher; gold and oil prices rose. Japan was closed for a holiday. Hang Seng (HSI) +0.3% at 27,265.52; Shanghai Composite +0.3% at 4,139.56; Kospi up to 5,346.34; ASX 200 +1.5% at 8,999.20; Taiex +1.7%. U.S. equities mixed: S&P 500 -0.3% at 6,941.81; Dow Jones +0.1% to 50,188.14; Nasdaq -0.6% at 23,102.47. Mizuho Bank noted softening U.S. consumer momentum as eight of 13 categories posted declines, with wage growth cooling and household credit stress rising. The latest U.S. retail report also surprised on the down side, pressuring Treasuries and signaling potential pause in Fed rate hikes. Key economic dates include Wednesday’s unemployment report and Friday’s consumer inflation data, which will inform the Fed’s decision on interest rates. Coca-Cola -1.5% following Q4 revenue below expectations; S&P Global -9.7% on 2025 profit guidance softer than expected. Elsewhere, Paramount raised its all-cash offer for Warner Bros. Discovery by 25 cents per share for each quarter past the end of 2026, signaling regulatory confidence; Paramount Skydance +1.5%; Netflix +0.9%. Energy and metals climbed: WTI +$0.50 to $64.49; Brent +$0.50 to $69.32; gold +0.8%; silver +2.0%. The dollar fell to 153.66 JPY from 154.40; EUR/USD to $1.1908 from $1.1890. Bitcoin -1.8% to $68,200+.