Asian equities saw gains on Thursday, with markets in Japan, South Korea, and Australia climbing, following a new high in US stocks. The focus now turns to upcoming inflation data, which could influence the Federal Reserve’s decision on policy easing in the coming months. Hong Kong equity futures also rose, despite a dip in US-listed Chinese companies, after the largest drop in over four years for mainland China’s benchmark index on Wednesday.
In the bond market, US Treasuries held steady in early Asian trading after yields moved higher on Wednesday. The Bloomberg Dollar Spot Index remained stable, following its 0.4% rise in the prior session. The yen remained flat against the US dollar, hovering around 149 per dollar, its lowest level since mid-August.
China’s financial markets continued to show volatility, with minimal signs of additional economic support. Investors remain cautious, waiting for further fiscal stimulus measures, with authorities announcing a press conference scheduled for the weekend.
On the corporate front, Taiwan Semiconductor Manufacturing Co. reported a 39% rise in quarterly revenue, exceeding market expectations, though Taiwan’s markets were closed on Thursday.
In commodities, oil prices remained steady as US crude inventories increased, while traders monitored China’s fiscal plans. Gold was little changed after a consecutive six-session drop.
Meanwhile, Fed Bank of San Francisco President Mary Daly indicated that the Federal Reserve may lower interest rates further this year to protect the labor market. She suggested one or two quarter-point cuts could be expected before the year ends.
