Asian stock markets saw a mixed performance on Thursday, with most benchmarks tracking gains from Wall Street following a weak US labor market report. The report sparked hopes for an interest-rate cut, boosting investor confidence. European and US equities rebounded on Wednesday as a global bond selloff eased, with shares in Google parent Alphabet jumping 9% after a favorable court ruling in an antitrust case.
The ruling also benefited Apple, whose deal to make Google search the default on iPhones was spared, leading to a nearly 4% rise in its shares. Meanwhile, gold reached a new high as investors worried about mounting government debt, and Japanese bond yields hit a record high. The yield on 30-year Japanese government bonds rose to 3.29%, while 20-year yields reached 2.69%, their highest since 1999.
In Asia, benchmark indexes were up in Tokyo, Seoul, Sydney, and Taipei during Thursday morning trading. However, Shanghai was 0.9% lower, and Hong Kong was down 0.2%. Shares in Cambricon, a leading Chinese semiconductor firm and competitor to US chip giant Nvidia, were down by more than 9% in Shanghai.
The soft US labor market report, showing a decline in job openings, helped lift investor confidence that the Federal Reserve will cut interest rates. This led to a decline in the US dollar, making Asian assets more attractive in currency-adjusted terms. According to Stephen Innes of SPI Asset Management, “When the US dollar slides, Asian assets instantly look more attractive… and regional equities should snap to life after a sluggish start to September.”
Oil prices continued to drop on Thursday amid expectations of excess supply in the coming months, as OPEC+ nations are expected to unwind production cuts further. Key figures at 0215 GMT showed the Tokyo Nikkei 225 up 0.9% at 42,327.34, while the Hong Kong Hang Seng Index was down 0.2% at 25,299.52. The Shanghai Composite was down 0.9% at 3,780.21, and the euro/dollar was down at $1.1654 from $1.1663 on Wednesday.
The current market trends are being closely watched by investors, who are weighing various factors, including the potential impact of a US interest-rate cut and the ongoing concerns about government debt. As the global economy continues to evolve, investors will be looking for signs of stability and growth in the coming months. The mixed performance in Asian stock markets reflects the complexities of the current economic landscape, where various factors are influencing investor decisions and market trends.