In recent market developments, the A-share index in China has shown signs of resilience, bouncing back after recently forming a symmetrical triangle patternTraders are closely watching as the index temporarily retreats to the lower support level of this triangle yet manages to maintain its position above itShort-term fluctuations are expected as analysts grapple with determining the future direction of the index amidst the support conditions present.

Meanwhile, Japan’s Nikkei index has hit a wall in its upward journey, experiencing several months of flat movements without breaking through established resistance pointsCurrently, it is forming an ascending triangle, and market observers anticipate a potential upward breakout as it attempts to challenge that resistance yet againThe coming days will be pivotal in revealing the index's trajectory.

Looking over to India and Vietnam, both indices experienced a brief pullback recently but have since shown signs of recovery, although they face obstacles that have pushed them down again

The Indian index has returned to its initial levels, but signs of a potential recovery are becoming evident over recent daysIn contrast, the Vietnamese index broke through its support levels and has clawed its way back, though it still fluctuates below previous high pressure points.

Shifting focus to commodity markets, soybean meal has faced a downturn, dropping near its prior low support areaShould it breach this support, significant downslide potential remainsPresently, it oscillates around this support zone, leaving traders uncertain whether it has truly bottomed out.

Nor is the North China market immune, having entered a correction phase following a significant riseIt now trends downward with no indication of stabilization, remaining within a high valuation zone and far from its lowest point, thus harboring substantial downside risks.

On the other hand, gold stocks that previously rose sharply are now correcting, straddling the line of tension as they experience further dips

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Proximity to previous lows raises concerns that further declines may continue until reaching solid support levels.

Banking stocks, traditionally viewed as a dividend play, are displaying a similar trendAfter a recent downturn, they have stabilized briefly before gaining upward momentum in recent daysNotably, banks have breached key resistance levels and are now progressing toward their highest pressure pointsHowever, the dividend sector overall is currently burdened, particularly from energy stocks weighing heavily on its performance.

Coal stocks are also caught in sideways trading patterns within their intermediate range, recently testing crucial support levels, although indicators of stabilizing conditions are emergingIf these fail, they risk plunging back to record lows.

In a broader regional context, the Asian markets experienced slight gains amid sluggish holiday trading on Thursday, as they maintained the upward momentum from earlier in the week

Notably, little news or economic data has shifted their course significantlyThe U.Sdollar, on the other hand, remains strong, lingering near two-year highs, which influences trading volumes as investors await developments from the Federal Reserve regarding interest rate forecasts.

It is important to acknowledge that the Australian and New Zealand markets were closed on Thursday for the holiday, missing out on trading opportunities as a result.

Traders have reacted to comments from Federal Reserve Chair Jerome Powell, indicating a reduction in anticipated rate cuts for 2025. As a result, expectations for interest rate cuts have lowered, pushing U.STreasury yields and the dollar higher while exerting pressure on commodities and gold.

The 10-year Treasury yield has stabilized at about 4.5967%, while earlier this week, it surpassed 4.6% for the first time since May 30. Meanwhile, two-year yields followed suit, increasing to 4.3407%, reflecting shifting market dynamics.

Tom Porcelli, Chief U.S

Economist at PGIM Fixed Income, expressed views that in light of the Fed's recent hawkish holding on interest rates, a pause in cuts during the January Federal Open Market Committee meeting seems likely as more data is awaited before any decision is made on restoring or potentially ending rate cutsThe Fed's focus is clearly on balancing its dual mandate amidst diminishing relaxation policies.

The dollar index, consequently, hovers near two-year highs at 108.15, showing an upward ascent exceeding 2% for the monthFor major currencies, the Australian and New Zealand dollars against the dollar declined significantly, with the former dropping to 0.6241 and the latter to 0.5650.

In terms of economic repercussions, the euro dropped slightly to 1.0398 against the dollar, while the yen has fallen close to a five-month low at nearly 157.45.

A recent Reuters draft has highlighted that Japan is drafting a record $735 billion budget for the upcoming fiscal year, beginning in April, primarily driven by rising social security and debt repayment costs

This will contribute to Japan’s burden of being one of the highest indebted nations globally.

Overall regional performance concluded on a high note for the MSCI Asia-Pacific index, excluding Japan, which has slightly risen by 0.04%, positioning for an expected close to 2% weekly gain—boosted particularly by the surge on Wall Street earlier in the week.

Futures for the S&P 500 index moved slightly upwards by around 0.02%, while the Nasdaq index showed gains of 0.13%, and EUROSTOXX 50 futures improved by 0.04%.

Global stock markets appear set to close for the second consecutive year with gains exceeding 17%, largely insulated from escalating geopolitical tensions and a range of economic and political headwindsThis rally is underlined by strong performances from Wall Street, buoyed by enthusiasm surrounding artificial intelligence and robust economic growth that has attracted significant global capital into U.S

assets.

As noted by Vishnu Varathan, head of macro research at Mizuho Bank (excluding Japan), the surface-level market dynamics suggest that 2024 could herald an unusual period of prosperity, despite the prevailing skepticism surrounding broader global growth outside the U.S.

As the Nikkei index climbs by 0.38%, it is also projected to close with gains exceeding 17% this year.

Elsewhere, Bitcoin saw a slight increase of 0.5%, trading at approximately $98,967, having retreated from record highs beyond $100,000 due to recent Fed actions that readjusted market expectations.

Furthermore, Russian Finance Minister Anton Siluanov announced that Russian enterprises have begun utilizing Bitcoin and other digital currencies for international payments, following legislative changes that allow such practices in response to Western sanctions.

In commodities, Brent crude futures rose by 0.18% to $73.71 per barrel, with U.S