Asian Stocks Rise Following Wall Street, Yen Gains: Markets Wrap

(Bloomberg) — Asian equities advanced Thursday after stocks and bonds rose on Wall Street in a week marred by tariffs, lackluster tech earnings and uneven US economic data. The yen strengthened to the highest level since early December.

A gauge of Asian equities rose for a third day to the highest level since Dec. 18. US equity futures were steady after the S&P 500 and Nasdaq 100 both notched a second day of gains on Wednesday.

Shares in Hong Kong and mainland China advanced, reversing their declines Wednesday. The US Postal Service said it’s accepting “all international inbound mail and packages” from China and Hong Kong, walking back an announcement made only hours earlier to halt some overseas shipments.

“It slightly positive that USPS wanted to be pragmatic about the enforcement of its role,” Homin Lee, senior macro strategist at Lombard Odier told Bloomberg Television. “That said, this type of volatile policy making will continue to target China, in our view, given the atmosphere in Washington DC.”

The steadiness in equities and bonds reflect a sense of calm after gyrations earlier in the week as President Donald Trump began to impose elements of his tariff plan. Traders still displayed caution in adding to risk in their portfolio, with the focus is shifting to Friday’s US jobs numbers and the effect on Federal Reserve policy.

“Volatility has been the story this week, with the stock market trying to find its footing as it navigates a shifting tariff landscape and mixed earnings,” said Daniel Skelly, head of Morgan Stanley’s Wealth Management Market Research & Strategy Team. 

Treasuries were steady in Asian trading after rallying across the curve Wednesday. The US 10-year yield dropped nine basis points to 4.42% during the session while the policy-sensitive two-year yield declined three basis points to 4.18% — both the lowest since the middle of December.

The yen trimmed some of its gains against the dollar. Bank of Japan official Naoki Tamura said Japanese interest rates could touch 1% in the second half of the fiscal year 2025. The Japanese currency also faces fresh demand from hedge funds amid volatile trading in currency markets.

Lower yields weighed on the dollar. An index of greenback strength fell 0.2% Wednesday to the lowest level in a week. 

The moves in the US overnight were partly the result of data that showed weaker-than-expected demand for services. The slowdown suggests activity may moderate in coming months as some Americans tighten their belts against a backdrop of the high cost of living.

Meanwhile, Treasury Secretary Scott Bessent said the Trump administration’s focus with regard to bringing down borrowing costs is 10-year Treasury yields, rather than the Federal Reserve’s benchmark short-term interest rate.

Shares in Nomura Holdings Inc. rose 8% to levels not seen since 2008 as profit rose more than analysts expected in results released Wednesday.  Nissan Motor Co. rose while those in Honda Motor Co. fell following signs of doubt regarding a potential combination of the two companies.

Data set for release in Asia includes inflation for Vietnam and Thailand. In Europe, the Bank of England is expected to reduce interest rates by 25 basis points to 4.5%.

In commodities, gold was steady after touching a record high Wednesday amid concerns over tightness in the market. US oil inched higher after falling more than 2% Wednesday. Saudi Arabia increased the price of its flagship crude to Asia as the kingdom responds to surging premiums for Middle Eastern crude and improving refinery margins. 

“Uncertainty is not good when it comes to the outlook for demand,” Tamar Essner, principal for Vectis Energy Partners, said on Bloomberg Television regarding the Wednesday decline in oil prices. “Particularly in an environment when Chinese demand, the lynchpin of the demand growth story, is already under question.”

Key events this week:

• Eurozone retail sales, Thursday
• UK rate decision, Thursday
• US initial jobless claims, Thursday
• Fed’s Christopher Waller, Lorie Logan speak, Thursday
• Amazon earnings, Thursday
• US nonfarm payrolls, unemployment, University of Michigan consumer sentiment, Friday
• Fed’s Michelle Bowman, Adriana Kugler speak, Friday

Some of the main moves in markets:

Stocks

• S&P 500 futures rose 0.1% as of 11:47 a.m. Tokyo time
• Nasdaq 100 futures was little changed
• Japan’s Topix rose 0.2%
• Australia’s S&P/ASX 200 rose 1.1%
• Hong Kong’s Hang Seng rose 0.1%
• The Shanghai Composite rose 0.5%
• Euro Stoxx 50 futures rose 0.5%

Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro fell 0.1% to $1.0392
• The Japanese yen rose 0.2% to 152.26 per dollar
• The offshore yuan was little changed at 7.2852 per dollar

Cryptocurrencies

• Bitcoin rose 0.4% to $97,353.68
• Ether rose 0.9% to $2,811.52

Bonds

• The yield on 10-year Treasuries was little changed at 4.42%
• Australia’s 10-year yield declined five basis points to 4.31%

Commodities

• West Texas Intermediate crude rose 0.4% to $71.29 a barrel
• Spot gold was little changed

This story was produced with the assistance of Bloomberg Automation.

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