Asian markets saw modest gains as investors held onto hopes that Nvidia, a key player in the AI industry, would live up to lofty expectations.
New Zealand’s central bank issued a stark warning about persistent inflation issues, indicating that interest rates would need to remain elevated for an extended period, which was unexpected by the market.
This announcement prompted the New Zealand dollar to rise 0.9% to a one-month peak of $0.6151, alongside a surge in bond yields. The currency also reached its highest value in 17 years against the relatively low-yielding Japanese yen.
The MSCI Asia-Pacific index excluding Japan increased by 0.4%, continuing a four-week rally that brought it to a two-year high.
Chinese blue chips showed little movement, hovering just below a seven-month high reached earlier in the week.
Japan’s Nikkei index declined by 0.8% as reports indicated that a weak yen was boosting exports but also increasing imported inflation and negatively affecting business confidence.
In the United States, stock indexes slightly rose to set new records. The S&P 500 increased by 0.3% to 5,321.41, surpassing its previous record. The Nasdaq Composite grew by 0.2% to 16,832.62, a day after achieving a new all-time high. The Dow Jones Industrial Average also saw a 0.2% increase to 39,872.99, approaching its recent peak.
The yield on the benchmark 10-year US Treasury bonds decreased to 4.41% from 4.48% the previous day.
