[HONG KONG] Asian stock markets were mostly up on Thursday morning, tracking gains made on Wall Street as a weak labour market report in the United States boosted hopes for an interest-rate cut.
European and US equities rebounded on Wednesday as a global bond selloff eased, with shares in Google parent Alphabet jumping after a favourable court ruling.
Meanwhile, gold reached a new high as investors continued to worry over mounting government debt. Japanese bond yields also hit a new record.
Asian benchmark indexes were up in Tokyo, Seoul, Sydney and Taipei during Thursday morning trading.
Shanghai was 0.9 per cent lower, while Hong Kong was down 0.2 per cent.
In Shanghai, shares in leading Chinese semiconductor firm Cambricon – a key competitor of US chip giant Nvidia in the local market – were down by more than nine per cent.
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A soft US labour market report on Wednesday showing a decline in job openings helped lift investor confidence the Federal Reserve will cut interest rates.
“The dollar, naturally, buckled under the weight of weaker jobs and lower rates, and increased Fed cut bets, handing Asia an early boost,” wrote Stephen Innes of SPI Asset Management, in a note.
“When the US dollar slides, Asian assets instantly look more attractive in currency-adjusted terms, and regional equities should snap to life after a sluggish start to September.”
Investors in Japan reacted Wednesday to concerns that Prime Minister Shigeru Ishiba might soon be forced to step down after the number two in his ruling Liberal Democratic Party offered to quit on Tuesday over July’s disastrous upper house election.
Yields on 30-year Japanese government bonds rose to an all-time high of 3.29 per cent on Wednesday, while 20-year yields reached 2.69 per cent – their highest since 1999.
Also weighing on investors’ minds was the decision by a US judge to refrain from requiring Google to sell its Chrome web browser in a closely watched antitrust case.
Shares in Google parent Alphabet rose around nine per cent on Wednesday, while Apple – whose lucrative deal to make Google search the default on iPhones was also spared in the court ruling – rose nearly four per cent.
Oil prices continued to drop Thursday amid expectations of excess supply in the coming months as Opec+ nations are expected to further unwind production cuts. AFP
