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Asian markets stumble as traders struggle to hold Fed cut rally Estelle.Bronkhorst Thu, 12/04/2025 - 06:00 HONG KONG - Asian markets struggled to maintain their early momentum Thursday, even after the latest batch of US data reinforced expectations that the Federal Reserve will cut interest rates for a third successive time next week.While Wall Street rose for a second day after a minor selloff on Monday, regional traders moved a little more tentatively as worries over extended valuations in the tech sector continued to linger.Bets on a US reduction on Wednesday have surged to around 90 percent in the past two weeks, after several Fed officials backed such a move saying supporting jobs was more important than keeping a lid on elevated inflation.The need for more action was further stoked by data from payrolls firm ADP showing 32,000 posts were lost in November, compared with an expected rise of 10,000, according to Bloomberg. Hiring has been choppy of late as employers weather cautious consumers and an uncertain macroeconomic environment, ADP chief economist Nela Richardson said.The reading was also the most since early 2023 and is the latest example of a stuttering labour market. Right now, the data argues for additional Fed funds rate cuts. US labor demand is weak, consumer spending is showing early signs of cracking, and upside risks to inflation are fading, Elias Haddad, of Brown Brothers Harriman Co, wrote.Markets in Asia stumbled as they struggled to match New York s advance.Tokyo advanced with Sydney and Manila, but Hong Kong, Shanghai, Seoul, Singapore, Wellington and Taipei were all down.

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