Asian stocks broadly increased as a softening US labour market strengthened expectations of a Federal Reserve interest rate cut in September.
Concerns about a cooling US economy, however, tempered risk appetite, with the Asian market focusing primarily on Indian stocks.
Volatility persisted following Tuesday’s decline, driven by election results showing a narrower-than-anticipated victory margin for Prime Minister Narendra Modi.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose by 0.8%, while the Nikkei fell by 0.9%, influenced by the renewed strength of the Japanese yen.
US stocks rebounded from an early morning slump to close higher on Tuesday, as new data indicated job vacancies in April fell to their lowest level since 2021.
The S&P 500 rose by 7.94 points to 5,291.34, the Dow Jones Industrial Average increased by 140.26 points to 38,711.29, and the Nasdaq Composite added 28.38 points to 16,857.05.
In the bond market, the yield on the 10-year Treasury dropped to 4.33% from 4.39% late Monday and 4.50% late Friday.
