Asian markets experienced a rise, while currencies maintained their strength against the yen due to concerns about potential action from the Bank of Japan.
The Hang Seng index in Hong Kong led the gains, jumping over 2% on its first trading day since Thursday. This surge came as investors reacted positively to data indicating China’s manufacturing expansion exceeded expectations last month.
Markets in Sydney, Seoul, Singapore, Taipei, and Manila also showed gains. Shanghai saw a marginal decline, along with Wellington and Jakarta.
The Japanese Nikkei index showed fluctuations, briefly surpassing the 40,000-point threshold in the morning session but later levelling off just below that mark.
The yen weakened slightly, trading at 151.76 against the dollar, not far from its 34-year low of 151.975 reached last week. Market participants were watchful for any signs of intervention by Japanese authorities.
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In other developments, the anticipation of a Federal Reserve interest rate cut diminished. This change in sentiment followed Monday’s data showing growth in US manufacturing for the first time in eighteen months in March, with a sharp increase in production and new orders, underscoring the economy’s resilience.
This strong manufacturing data pushed yields on US Treasury bonds upwards, reaching two-week highs for both two-year and 10-year yields, which in turn strengthened the dollar.
In the recent trading session in the US, the stock market showed varied performances. The Dow Jones and the S&P 500 experienced declines, dropping 0.6% and 0.2% respectively. On the other hand, the Nasdaq saw a slight increase of 0.1%, with the majority of large technology stocks making gains, although notable exceptions were Apple and Tesla, which did not follow this upward trend.
