Asian Markets Rebound Amid Wall Street Gains and Strong Yen

Asian markets saw a notable rise, supported by Wall Street’s gains,
while the Japanese yen continued its upward trend amid expectations of interest rate hikes.

Contents

Key Movements
Data Impact
Global Markets

Key Movements

Stock Performance

Gains in Asia
Stock indices in Australia, Japan, and South Korea rose on Thursday,
while markets in mainland China and Hong Kong experienced fluctuations at the start of trading.

Wall Street Rebounds
U.S. markets continued their recovery, with the S&P 500 and Nasdaq 100 recording gains for the second consecutive day,
contributing to the overall strength of global stock markets.

Bond Market Activity

Stable Yields
U.S. bonds remained stable in Asian trading after yields increased across the curve on Wednesday.

Decline in Short-Term Bonds
The yield on 10-year U.S. bonds fell by 9 basis points to 4.42%, while the yield on 2-year bonds,
which are more sensitive to monetary policy, dropped 3 basis points to 4.18%.

Yen Strength

Continuous Rise
The Japanese yen extended its gains for the fourth consecutive day,
supported by expectations of an interest rate hike in Japan during the second half of 2025.

Central Bank Comments
A Bank of Japan official indicated that interest rates could reach 1%, boosting demand for the yen in global markets.

Data Impact

Weakening Dollar

The U.S. Dollar Index declined by 0.2%, reaching its lowest level in a week, influenced by falling U.S. bond yields.

Employment Fluctuations

Recent data showed that employment in U.S. companies increased more than expected,
adding to anticipation ahead of the official jobs report set for release on Friday.

Corporate Movements

Shares of Nomura Holdings surged 8%, reaching their highest levels since 2008, driven by stronger-than-expected financial results.

Shares of Nissan Motor rose, while Honda Motor shares declined amid growing uncertainty about a potential merger between the two companies.

Global Markets

UK Decisions

The Bank of England is expected to cut interest rates by 25 basis points to 4.5%, in an effort to support the economy.

Tensions with China

China has requested discussions with the United States at the World Trade Organization,
following the U.S. imposition of a 10% tariff on Chinese imports.

Commodity Markets

Gold prices remained stable after reaching an all-time high, amid concerns over supply shortages.

U.S. oil prices recorded slight gains after dropping more than 2%,
while Saudi Arabia raised its benchmark crude price for Asia in response to rising Middle Eastern oil premiums and improving refining margins.

Asian Markets Rebound Amid Wall Street Gains and Strong Yen

Asian Markets Rebound Amid Wall Street Gains and Strong Yen

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