Bonds Drop on US Data but Hong Kong Boosts Asian Stocks – Asia Market Wrap

In a mostly quiet Asian market, Hong Kong equities did better than expected, but bonds in the area declined as investors reduced their wagers on the Federal Reserve’s easing.

Following a two-session break, Hong Kong shares surged, mirroring Monday’s advances in their mainland equivalents. With the release of its first electric car, Xiaomi made the biggest contribution to the improvement in the city’s benchmark. Chinese stock market gains paused.

As the yen steadied after plunging to nearly year-low levels versus the dollar on Monday, Japanese stocks gave up their morning gains. The possibility of market intervention by Japanese policymakers has increased due to the drop.