Asian Stocks Climb, Yen Rallies Off Historic Lows – Asia Market Wrap

Asia’s stocks increased as the Federal Reserve’s case for interest rate decreases was reinforced by economic statistics, and the yen recovered from its lowest point vs the dollar since 1986.

The rise in technology companies was the main driver of the MSCI Asia-Pacific gauge reaching its highest position in more than two years. A record intraday high was reached by Japan’s Topix, and stocks in South Korea, Taiwan, and Australia also rose. Ahead of a US holiday, the S&P 500 and Nasdaq 100 set records during a brief session, but there was minimal movement in US futures contracts.

After falling to its lowest level against the US dollar since 1986 during the previous session, the yen gained strength. There is still conjecture that the Bank of Japan will only progressively tighten regulations. The dollar index declined for the third straight session.

Due to a spate of weak US economic data, which has resurrected the prospect of rate reduction in September, global equities are poised to record their longest run of weekly advances since March. According to estimates on Wednesday, the US services sector shrank at its quickest rate in four years, and there were more indications of a deteriorating labour market.