Asian Stocks Rise as US Fiscal Jitters Ease and Bond Yields Stabilize – Asia Market Wrap

Asian shares rebounded on increasing risk appetite, putting a regional gauge on course for a sixth consecutive week of gains, and Treasuries steadied as concerns about US fiscal policy eased.

The MSCI Asia Pacific Index advanced 0.6% while futures for the S&P 500 rose 0.1%. Contracts for European stocks also gained. The yield on the 30-year US Treasury held at 5.04%. The Dollar Index dropped 0.2%, extending this week’s loss to 1.2%. That’s the biggest move in six weeks.

Bond markets this week have reflected investors’ concerns about the fiscal health of the US economy, which was amplified after Moody’s Ratings downgraded the nation’s top credit rating last week. That broke a relative calm in financial markets after a month of turmoil from US President Donald Trump’s tariff blitz. US stocks had even rallied to within striking distance of a bull market.

Thursday’s rebound in Treasuries came after the bond market sold off recently to reflect worries about the US’ surging debt load. Investors are concerned that Trump’s signature tax bill, which narrowly passed the House, would boost the nation’s already swelling deficit.

With the yield on 30-year Treasury bonds again passing the 5% mark on Wednesday, the nation’s creditors injected a dose of harsh economic reality into Trump’s fiscal policy.