Stocks Remain Rangebound as Treasuries Rally Declines – Asia Market Wrap

Asian equities fought for direction and moved modestly as investors eschewed long-term risky bets ahead of Friday’s US payrolls report.

A regional measure fell 0.1% as Japanese stocks fell following lower-than-average demand at a 30-year government bond auction. Treasuries were steady in Asian trading. Bonds gained across the curve Wednesday after data revealed a reduction in US service providers and a slowing in hiring. Equity-index futures for the US fell 0.1%, while those for European markets were unchanged.

Investors are remaining on the sidelines as they await US data and the ECB’s rate announcement on Thursday. US economic activity has decreased marginally in recent weeks, showing that tariffs and uncertainties are harming the economy. Nonetheless, a gauge of global markets closed at a record high Wednesday, fuelling expectations that the worst may be over following Trump’s ‘Liberation Day’ tariff declaration two months ago.

Meanwhile, a private study found that China’s services activity rose quicker in May, indicating that the consumer economy is stabilising as rising US tariffs threaten export demand.

In Japan, the 30-year government bond auction had the lowest demand since 2023, putting more pressure on the government to modify supply. This followed weak demand for 20-year and 40-year bonds late last month, which raised investor concerns about a dearth of buyers for longer tenors. Japanese bonds maintained their morning advances on short covering.