Date: 25th November 2025.
Asian Markets Rise as US Stock Rally Boosts Global Sentiment; Bitcoin Stabilises.
Asian stocks traded mostly higher on Tuesday, supported by a strong rally on Wall Street as investors increased their bets that the Federal Reserve may cut interest rates soon. Meanwhile, US futures slipped, oil prices fell, and Bitcoin attempted to recover after weeks of heavy selling.
Asian Stock Markets Mixed but Mostly Higher
Japan’s Nikkei 225 was little changed at 48,628.85 as markets reopened from a holiday. The index was pressured by a sharp 10.3% drop in SoftBank after concerns emerged that Google’s new Gemini AI model could challenge returns from SoftBank’s major investment in OpenAI.
In the rest of Asia:
Kospi in South Korea rose 0.3% to 3,859.12.
Taiwan’s Taiex jumped 1.5%, extending tech-sector strength.
Hong Kong’s Hang Seng climbed 0.4% to 25,821.47.
Shanghai Composite gained 0.9% to 3,872.45.
Alibaba rose 1.6% ahead of its earnings release later in the day.
Australia’s S&P/ASX 200 added 0.1%, closing at 8,537.00.
US Stock Market Rallies Ahead of Thanksgiving Week
US markets will pause on Thursday for the Thanksgiving holiday before Black Friday and Cyber Monday. Still, investors kicked off the shortened trading week with strong gains:
S&P 500 jumped 1.5% to 6,705.12.
Dow Jones added 0.4% to 46,448.27.
Nasdaq Composite surged 2.7% to 22,872.01.
The rally was fuelled by rising expectations of a potential Fed rate cut in December, which would help support the US economy and boost equity valuations. AI-related stocks also drove momentum:
Alphabet surged 6.3% on optimism around its latest Gemini AI technology.
Nvidia climbed 2.1%, extending its AI-driven leadership.
Despite recent volatility, the S&P 500 remains within 2.7% of its all-time high, underscoring continued investor confidence in the US market outlook.
Key Inflation Data in Focus This Week
Markets are now awaiting the US Producer Price Index (PPI) for September, a major signal of inflation trends. Economists expect wholesale inflation to stay at 2.6% year-over-year.
A hotter-than-expected reading could reduce the likelihood of a December Fed rate cut, especially with inflation still above the central bank’s 2% target. Even so, traders currently price in an 85% probability of a rate cut, up sharply from last week’s levels.
Oil Prices Fall as Dollar and Euro Slip
In early Tuesday trading:
WTI crude dropped 25 cents to $58.59 per barrel.
Brent crude fell 30 cents to $62.42.
The US dollar eased to 156.70 yen.
The euro slightly declined to $1.1517.
Bitcoin Price Attempts to Recover After Heavy Selling
Bitcoin, which has been under intense selling pressure in recent weeks, slipped 1.1% to $88,100, far below last month’s high near $125,000. The downturn erased over $1 trillion from the broader crypto market and drove Bitcoin to a seven-month low.
However, market signals suggest that the sell-off may be stabilising:
Bitcoin’s 14-day RSI is now around 32, near oversold territory.
Implied volatility on Bitcoin options has dropped to levels last seen in April.
Put-option premiums have fallen sharply, with the cost of downside protection dropping from 11% to 4.5%, according to Orbit Markets’ Caroline Mauron.
‘This indicates that stress has eased significantly and investors believe Bitcoin may have found a near-term bottom,’ Mauron said.
Still, caution dominates the crypto space. Bitcoin remains on track for its worst month since 2022, and crypto ETFs appear set for their largest monthly outflows since launching.
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Please note that times displayed based on local time zone and are from time of writing this report.
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Andria Pichidi
HFMarkets
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