Asian stocks climb, Yen rallies off historic lows: Markets wrap
US shares touched a fresh peak as economic data supported the case for Federal Reserve rate cuts.
A gauge for equities in the region gained for a fifth straight session as Japan’s Topix hit a record intraday high and shares in South Korea and Australia advanced. The S&P rose 0.5% and the Nasdaq climbed 0.9% to both set new highs Wednesday in a shortened session ahead of a US holiday. Contracts for US equities were steady in early Asian trading.
The moves were helped along by data that showed the services sector contracted at the fastest pace in four years while the labor market saw further signs of softening.
In Asia, the yen strengthened Thursday after setting a fresh low since 1986 against the greenback in the previous session as speculation persists that the Bank of Japan will tighten policy only gradually.
Minutes from the Fed’s June policy meeting showed officials were awaiting evidence that inflation is cooling and were divided on how long to keep rates elevated. Swap traders projected almost two rate cuts in 2024, with the first in November — though bets on a September reduction increased.
“Bad news is good news,” said Fawad Razaqzada at City Index and Forex.com. “That’s how risk assets reacted in the aftermath of today’s US data releases.”
Australian and New Zealand yields fell early Thursday after Treasury 10-year yields dropped seven basis points to 4.36%, weighing on an index of dollar strength.
Elsewhere in Asia, Chinese electric-car brands held on to their share of the slumping European EV
