Following US CPI, Asian Stocks Rise While Japanese Yields Rise – Asia Market Wrap

Asian stocks followed US shares higher as falling inflation supported the case for Fed rate cuts. Japanese 10-year bond yields surged to multi-decade highs after the BoJ boosted increased rates as predicted.

The MSCI Asia Pacific Index rose 0.7%, with major contributors including SoftBank and Tencent. The S&P 500 rose 0.8% on Thursday, while the tech-heavy Nasdaq 100 rose 1.5%. Gains were aided by a positive outlook from major Micron, which alleviated concerns about AI spending and valuations. US equities futures were barely changed on Friday, while European prices dipped.

Japan’s benchmark 10-year bond yield surpassed 2% for the first time in nearly two decades, as the BoJ boosted its benchmark rate to its highest level since 1995. The Yen dropped versus all of its Group-of-10 counterparts.

In commodities, oil headed for a second weekly loss despite tensions around a US naval blockade of sanctioned tankers calling at Venezuela, with futures weighed down by expectations for a global surplus. Brent has slipped more than 2% this week.

Precious metals remained in favor. Platinum was near $1,930 an ounce, on track for a seventh day of gains and close to the highest level since 2008. The surge has come as the London market shows signs of tightening, with banks parking metal in the US to insure against the risk of tariffs.