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Asian stocks edged higher Wednesday ahead of the Federal Reserve’s final rate decision for 2024, with Japan’s Nikkei down 0.2% but gains in Hong Kong, Shanghai, and South Korea. Nissan shares surged 22% on merger talks with Honda, while U.S. futures rose and Bitcoin retreated after hitting $108,000. The Fed is expected to cut rates, though robust U.S. retail data raises doubts about easing in 2025. In South Korea, the Bank of Korea maintained its 2% inflation target despite persistent price pressures. Meanwhile, Kioxia’s Tokyo IPO jumped 12% on optimism about data center demand, and SF Holding rose 3.5% in its Hong Kong debut despite concerns over China’s recovery. Nissan-Honda merger talks sparked record Nissan share gains, signaling potential industry consolidation. Investors remain cautious amid inflation risks, global market uncertainty, and lingering economic challenges. Focus shifts to the Fed’s decision, inflation trends, and recovery signals in tech, logistics, and auto sectors for future growth.

Asian Stocks Edge Higher Ahead of Fed Decision

Asian markets were broadly higher on Wednesday as investors awaited the Federal Reserve’s final interest rate decision for 2024. Japan’s Nikkei 225 dipped 0.2% amid mixed trade data, while Hong Kong’s Hang Seng and Shanghai’s Composite Index posted gains of 0.6% and 0.7%, respectively. South Korea’s Kospi rose 1%, buoyed by optimism. Meanwhile, Nissan Motor shares surged 22% following merger talks with Honda, though no agreement has been finalized.

U.S. futures also gained, while oil prices were mixed. The Fed is widely expected to cut rates for the third time this year, though strong U.S. retail data is raising questions about rate cuts in 2025. Bitcoin remains volatile after hitting a record $108,000 before retreating slightly.

Investment Insight: The Fed’s expected rate cut could provide short-term market lift, but persistent inflation and strong U.S. economic data may limit further easing in 2025. Stay cautious as global risk appetite may waver.

Bank of Korea Maintains 2% Inflation Target Amid Persistent Price Pressures

The Bank of Korea (BOK) announced it will keep its 2% inflation target, stating that a “low-inflation” era is unlikely in the next one to two years. Governor Rhee Chang-yong highlighted stable inflation expectations, though persistent price pressures from a strong dollar, climate change, and public utility costs remain. Despite weaker-than-expected consumer inflation at 1.5% last month, the BOK expects inflation to rise to the upper-1% range in early 2025 and stabilize near the target in the latter half of the year.

Investment Insight: Rising inflation pressures and a weakening currency suggest limited room for further rate cuts in South Korea. Investors should monitor inflation trends and currency movements closely, particularly for export-heavy sectors.

Kioxia Surges 12% in Tokyo IPO Debut Amid Investor Optimism

Memory-chip maker Kioxia Holdings Corp. jumped 12% in its Tokyo Stock Exchange debut, closing at ¥1,627—well above its IPO price of ¥1,455. The listing values the company at ¥877 billion ($5.7 billion), far below the $18 billion paid by Bain Capital and partners to acquire it in 2018. Despite a challenging backdrop of weak NAND memory prices, the IPO drew strong investor demand, helped by its relatively low valuation. Kioxia’s price-to-book ratio of 1.87 lags behind U.S. rival Micron’s 2.67, reflecting cautious optimism about a recovery in chip demand fueled by global data center investments.

Investment Insight: Kioxia’s debut highlights investor appetite for undervalued tech plays, but weak NAND pricing and global demand challenges could weigh on future growth. Investors should focus on broader tech recovery trends and Kioxia’s potential to capitalize on data-center expansion.