Asian equities advanced, taking cues from Wall Street’s overnight rally, signaling a wave of optimism fueled by easing bond yields and economic resilience. Key indices across Japan, South Korea, and Hong Kong posted gains, with the Nikkei 225 climbing 0.9%, while the Hang Seng Index rose 1.2%, buoyed by tech stocks. The sentiment was supported by signs of stabilization in U.S. Treasury yields, which calmed concerns over potential rate hikes.
The yen strengthened, trading at 145.60 per dollar, as speculation grew around possible Bank of Japan interventions to counter the currency’s recent declines. This move contrasted with the broader dollar retreat against major currencies. While the risk-on sentiment pushed markets higher, analysts remain cautious about sustained momentum, citing potential geopolitical and inflationary risks. Markets are closely watching U.S. labor data for further clues on the Federal Reserve’s stance.
