Japanese Stocks Rally as Bond Sale Sees Solid Demand – Asia Market Wrap
On Thursday, Japanese assets dominated Asian markets. The country’s shares led increases in the area after US data raised the prospect of a Fed rate cut next week, while a sale of its 30-year government bonds garnered the highest demand since 2019.
The Topix and Nikkei 225 each jumped more than 1.7%, while MSCI Inc.’s broader Asian shares index gained 0.5%. South Korean and Taiwanese indexes reversed their two-day gains. US stock futures were unchanged after the S&P 500 rose 0.3% overnight, while Bitcoin remained around $93,000 after a two-day gain.
Japan’s 30- year bonds rose following the auction results, which came after a 10- year note sale earlier in the week generated strong demand. Together, the data have provided some comfort to the market, which has seen rates rise due to fresh fiscal concerns and expectations of a probable rate hike at the December 19th BoJ policy decision.
In currency markets, the Dollar index held firm after falling 0.4% the previous day, as US treasuries gained across the curve, sending two-year rates down to approximately 3.48%. The Indian rupee sank to a record low versus the Dollar as confidence remained poor amid delays in reaching a trade agreement with the US.
Separately, China set its daily reference rate for the Yuan at a slightly lower level than expected, implying that the central bank intends to limit advances in the controlled currency, which is approaching a closely watched level of 7 per Dollar.
