Asia stocks hold gains as confidence grows on the rate outlook. As confidence builds that interest rates will decline globally next year, Asian equities were flat on Thursday, with markets holding onto their weekly gains. Meanwhile, oil prices dropped on the possibility of smaller-than-expected supply cutbacks by OPEC+.

In keeping with their larger growth objectives, investors are closely watching Chinese officials for hints about potential assistance for the beleaguered real estate sector. Despite light trade, MSCI’s broadest index of Asia-Pacific equities outside of Japan (.MIAPJ0000PUS) fell 0.03%. Both Japan and the U.S. are currently on vacation.

The real estate sub-index (.CSI931775) recovered its early losses to gain 2.11% on Thursday, while China’s benchmark share index (.CSI300) dipped 0.16%. According to sources cited by Bloomberg late on Wednesday, China added the heavily indebted Country Garden Holdings Co. (H.K.) to a draft list of 50 developers qualified for various forms of financial assistance.

Meanwhile, a sizable wealth manager with significant exposure to the real estate market revealed that it is insolvent and may be liable for up to $64 billion in related obligations. Reuters said on Wednesday that Chinese government advisors would suggest setting the following year’s economic growth objectives at 4.5% to 5.5% during an annual policymakers’ meeting.

Due to the U.S. Thanksgiving holiday, trading was expected to be light globally. Redmond Wong, a Greater China market strategist at Saxo Markets, stated that although the Federal Reserve may cut rates sooner than anticipated, the U.S. market, which has priced out the likelihood of another rate hike in December, dismissed the positive weekly jobs data released on Wednesday night.

Following a 0.3% increase the day before and a near three-decade high for the Nikkei 225 (.N225), Japanese markets are closed on Thursday in observance of a national holiday.

The Australian stock market (.AXJO) had a 0.62% decline, while Hong Kong’s Hang Seng index (.HIS) shed 0.22%. This month has seen generally favorable market conditions, with equities rising in anticipation of more benevolent interest rate conditions.

With the S&P 500 and MSCI’s all-country index (.MIWD00000PUS) up more than 8% this month alone, Wall Street’s benchmark S&P 500 (.SPX) is close to reaching a new high for 2023. The month-to-date gain on the tech-heavy Nasdaq Composite (.IXIC) is 11%.

Investors can evaluate recession risks and the potential timing of rate reductions with the upcoming forward-looking November PMIs. The critical releases on Thursday are the minutes of the October meeting of the European Central Bank and the flash PMIs for many European nations. Data from the US PMI is anticipated for Friday.

While the U.S. manufacturing PMI fell significantly in October, the PMIs for the eurozone and Britain have already fallen below the 50-point mark, indicating a contraction in economic activity.

After falling to a two-month low of 4.363%, the yield on benchmark 10-year notes stood at 4.408% on Thursday. The dollar index reached a 2-1/2-month low overnight as statistics revealed that fewer Americans than anticipated filed new applications for jobless benefits last week. After OPEC+ postponed a ministerial meeting, which raised hopes that producers could reduce output less than expected, U.S. oil lost 1.14% to $76.22 per barrel, while Brent traded at $80.92, down 1.27%. These losses continued from the previous session.

After U.K. Finance Minister Jeremy Hunt revealed tax cuts and other measures in his autumn budget to encourage growth but anticipated a significantly more dismal economic outlook than previously thought, sterling sank on Wednesday, and Britain’s FTSE 100 (.FTSE) declined for a third consecutive day.

As part of a $4 billion settlement that ends a years-long investigation into the largest cryptocurrency exchange in the world, Binance CEO Changpeng Zhao has resigned and entered a guilty plea to charges of violating U.S. anti-money laundering laws. On Thursday, the price of Bitcoin decreased by 0.77% to $37,337, following an almost 5% increase on Wednesday.