Asian markets showed resilience despite another dip on Wall Street, with Chinese stocks climbing after state-run banks and financial institutions were instructed to further stimulate consumer spending.
Hong Kong’s Hang Seng Index surged 2.5% to 24,038.85, while the Shanghai Composite Index rose 1.9% to 3,420.65.
China’s National Financial Regulatory Administration issued directives requiring financial institutions to expand consumer finance, promote credit card usage, support borrowers facing difficulties, and enhance transparency in lending practices.
Economists emphasise that stronger consumer spending is crucial for China’s economic recovery. However, many advocate for deeper structural reforms, such as increasing wages, expanding social welfare, and strengthening public health and education.
In Asia, Japan’s Nikkei 225 gained 0.9% to 37,120.07, while South Korea’s Kospi edged down 0.2% to 2,569.43. Australia’s S&P/ASX 200 advanced 0.6% to 7,793.50, Bangkok’s SET climbed 0.9%, and Taiwan’s Taiex rose 0.3%.
Wall Street in Correction Territory
On Thursday, Wall Street suffered another setback, with the S&P 500 officially entering correction territory as investors sought safer assets following fresh tariff threats from Donald Trump. The benchmark index closed more than 10% below its most recent record high of February 19.
The S&P 500 fell 1.4% to 5,521.52, while the Dow Jones Industrial Average declined 1.3% to 40,813.57, now approximately 9.4% below its record high. The Nasdaq Composite dropped 2%, closing at 17,303.01—down more than 14% from its recent peak after confirming a correction on March 6.
Bond Market Sees Safe-Haven Demand
Amid the equity sell-off, US Treasury yields declined as investors moved towards safer government debt. The yield on 10-year US Treasury notes fell to 4.27% from 4.32% on Wednesday, as bond prices rose in response to heightened demand.
