(Bloomberg) – Asian stocks rose on Thursday after stocks and bonds rose in a week, followed by tariffs, lack of technology revenues and uneven US economic data. The yen has been strengthened to its highest level since early December.
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The gauge of Asian stocks rose from December 18th to the third day. US stock futures were steady after the S&P 500 and Nasdaq 100 made profits for the second day on Wednesday. Stocks acquired in Hong Kong and mainland China reversed losses on Wednesday. The Treasury was stable after a sharp rally overnight. After a two-day reduction, the dollar strength gauge changed little.
The relatively stable trade on Thursday contrasts with market volatility after President Donald Trump decided to impose tariffs on Canada and Mexico and then postpone them. The US has advanced 10% tariffs on all imports from China.
“The Asian market is taking a break from previous uncertainty over US-China tariffs,” said Gary Ng, senior economist at Natixis SA. “But Trump's factors will continue to be an important source of volatility, and the potential for US-China relations will continue to drive investment flows,” he said.
The yen trimmed some of its profits against the dollar. Tamura, the Bank of Japan's most Hawkish board member, said interest rates could reach 1% in the second half of fiscal year 2025. Japanese currency is also facing new demand from hedge funds amid volatile trading in the currency market.
The Treasury had been stable in Asian trading after rallying across the curve on Wednesday. The 10-year yield for the US fell from 9 basis points to 4.42% during the session, and the policy-sensitive two-year yield fell from 3 basis points to 4.18%.
Meanwhile, Treasury Secretary Scott Bescent said the Trump administration's focus on reducing borrowing costs is on the 10-year Treasury yield, not the short-term Federal Reserve rate.
Elsewhere in Asia, Vietnam's inflation has been fastest at its fastest pace in six months, and Singapore said it will soon be releasing stock market measurements.
In Europe, the Bank of England is expected to cut interest rates by 25 basis points to 4.5%.
