World shares mixed after Wall St pulls near its all-time records

World shares were mixed on Thursday, after US stocks rose to near their records as investors focused on hopes the Federal Reserve will cut interest rates at its meeting next week.

The future for the S&P 500 was nearly unchanged, but that for the Dow Jones Industrial Average was slightly higher.

In early European trading, Germany’s DAX rose 0.7 per cent to 23,863.46. Britain’s FTSE 100 was down 0.1 per cent to 9,684.71, while France’s CAC-40 added 0.3 per cent to 8,110.58.

Japan’s Nikkei 225 index climbed 2.3 per cent to 51,028.42, nearing its all-time high, on expectations that the US Federal Reserve will cut its main interest rate next week, even while traders speculate over whether the Bank of Japan will raise interest rates this month.

Technology and telecoms giant SoftBank Group Corp.’s shares jumped 9.2 per cent after the company’s founder reaffirmed the company’s strategic shift to focus on OpenAI and other investments in artificial intelligence. SoftBank’s shares are still down nearly 28 per cent from a month ago, when it announced it had sold its stake in chip maker Nvidia for USD 5.8 billion to be able to invest more in AI.

The Japanese government’s 10-year bond yield rose above 1.9 per cent, its highest since 2007. Hong Kong’s Hang Seng index reversed early trading losses, adding 0.7 per cent to 25,935.90, led by gains for tech and consumer stocks. The Shanghai Composite index shed 0.1 per cent to 3,875.79.

South Korea’s Kospi fell 0.2 per cent to 4,028.51, with weakness in tech and automotive stocks weighing on the benchmark. Australia’s S&P/ASX 200 index recovered from a slump earlier in the day, adding 0.3 per cent to 8,618.40. Taiwan’s Taiex index and India’s BSE Sensex were nearly unchanged.

On Wednesday, US stocks rose to near their record levels as mixed data on the economy kept alive hopes for a cut to interest rates. The S&P 500 gained 0.3 per cent and pulled within 0.6 per cent of its all-time high set in late October. The Dow Jones Industrial Average climbed 0.9 per cent, and the Nasdaq composite added 0.2 per cent.

Stocks broadly got a lift from easing Treasury yields in the bond market. Yields fell after a report suggested US employers outside of the government may have cut more jobs in November than they added.

While the surprisingly weak report from ADP may be discouraging for people looking for jobs, it also bolstered expectations that the Federal Reserve will cut its main interest rate next week. If the Fed does, that would be the third cut of the year in hopes of helping the slowing job market.

A separate report on Wednesday on activity for the US services sector was more encouraging. It said growth was stronger last month than expected for businesses in the retail, finance, insurance and other industries.