Asian markets weak as US reports strong economic data raising chances of Fed rate increase

While most Asian stock market indices were trading lower on Thursday (24 November), the Shanghai Composite was up 0.09% at 3,244.21 as of 4.55am GMT following the US reporting strong economic data overnight which increased the chances of a Fed rate increase.

Data showed that the orders for durable goods in the US increased 4.8% on-month in October, much higher than the 2.7% gain predicted by economists.

Another set of data showed that there was an increase in US consumer sentiment in November, signalling rising confidence in the economy.

According to analysts, investors perceive the data positively and negatively. On the plus side, investors are said to feel that the US could order more goods and commodities from the Asia-Pacific region, going forward. On the flip side, investors reckon that such developments could lead to an increase in US interest rates as early as next month, leading to capital outflows from Asia.

"I was very surprised to see strong European PMIs [purchasing managers indices] and very strong US data as well...it's boding well for risk appetite.... [however] there are concerns about emerging markets," Christoffer Moltke-Leth, director of global sales trading at Saxo Capital Markets, was quoted as saying by the Wall Street Journal.

Indices in the region were trading as follows at 5.12am GMT:

Overnight (23 November), the FTSE 100 closed 0.03% lower at 6,817.71, while the Dow Jones Industrial Average closed higher by 0.31% at 19,083.18.

Among commodities, oil prices were trading mixed ahead of a Opec meeting scheduled on 30 November to discuss a deal to curb crude production. As of 5.21am GMT, Brent Crude was trading lower by 0.02% at $48.94 (£39.35) a barrel, while WTI crude oil was trading 0.06% higher at $47.99 a barrel.