Most Asian stocks saw gains following a strong close on Wall Street, buoyed by continued optimism for potential cuts in US interest rates this year.
The surge in commodities also influenced the markets, with gold hitting a new high, oil reaching a five-month high, and copper peaking at a 13-month high, which positively impacted shares in the basic materials and energy sectors.
In specific markets, Japan’s Nikkei 225 leapt by 1.7% to 40,120.11, and Australia’s S&P/ASX 200 increased by 0.4% to 7,813.80. South Korea’s Kospi grew by 0.8% to 2,728.82. However, Hong Kong’s Hang Seng dropped by 1.2% to 16,725.10, and the Shanghai Composite edged down nearly 0.2% to 3,069.30.
After a significant earthquake on Wednesday, analysts suggest that Taiwan Semiconductor Manufacturing Co. (TSMC) might recover quicker than expected, reducing worries about production disruptions. Notably, nine people were reported dead due to the earthquake. Taiwan’s markets remained closed on Thursday and Friday for national holidays.
In the US, the stock market showed modest movements on Wednesday, improving slightly from its most significant drop in recent weeks. The S&P 500 nudged up by 0.1% to 5,211.49, while the Dow Jones Industrial Average slightly decreased by 0.1% to 39,127.14, and the Nasdaq Composite index gained 0.2% to 16,277.46.
In the bond market, there was a decline in Treasury yields, with the 10-year yield falling to 4.34% from 4.36% on Tuesday.
The Asian markets experienced a rally on Thursday, with the yen weakening against all major currencies except the dollar, which in turn boosted Japanese stocks.
