Asian markets today: Asian markets started Thursday’s session on a positive note, with South Korea’s Kospi and Japan’s Nikkei 225 climbing to new record highs.
South Korea’s Kospi gained 1%, supported by a 3.45% jump in SK Hynix, which hit a fresh peak, while Samsung Electronics advanced 1.23%. In contrast, the small-cap Kosdaq slipped 0.5%.
Japan’s Nikkei 225 surged 2%, crossing the 71,000 mark for the first time, while the broader Topix index rose 1.27%.
Australia’s S&P/ASX 200 remained largely unchanged. Meanwhile, Hong Kong’s Hang Seng index futures stood at 24,510, slightly above the benchmark’s previous close of 24,493.95.
What’s driving Asian markets today?
Asian equities advanced and US stock futures moved higher as oil prices continued to retreat after US President Donald Trump signed a temporary agreement aimed at ending the conflict with Iran and restoring access through the Strait of Hormuz.
The market reaction came after the US benchmark index fell 1.2% on Wednesday, following signals from the Federal Reserve that additional interest rate hikes may be required to curb inflation. Brent crude declined more than 1% in early Asian trading, slipping below $79 per barrel.
Trump said he signed the agreement at the Palace of Versailles near Paris after meeting with French President Emmanuel Macron. A US official confirmed that the memorandum of understanding had taken effect. However, there was no immediate confirmation that Iran had begun fully reopening the Strait of Hormuz.
In bond markets, Australian and Japanese yields rose in line with a selloff in US Treasuries triggered by the Fed’s policy decision. The yield on the two-year Treasury note, which is particularly sensitive to interest-rate expectations, climbed 13 basis points to 4.18%. Nearly half of Fed officials now anticipate rate increases this year, leading traders to fully price in a hike by October and assign a strong probability to a move as early as September.
Federal Reserve Chair Kevin Warsh, speaking at his first press conference as central bank chief, refrained from providing explicit guidance on the next policy decision. He stressed that inflation has remained above the Fed’s 2% target for an extended period and reaffirmed the central bank’s determination to restore price stability.
The latest policy announcement marked the fourth straight meeting in which the Fed kept interest rates unchanged.
US stock market today
US markets ended sharply lower on Wednesday, with the S&P 500 and Nasdaq each declining more than 1%, as investors increasingly priced in the possibility that the next move from the Federal Reserve could be a rate hike.
The shift in sentiment followed comments from newly appointed Fed Chair Kevin Warsh emphasizing the importance of controlling inflation, alongside projections from policymakers indicating higher interest rates later this year.
The Dow Jones Industrial Average fell 507.12 points, or 0.98%, to close at 51,492.55, snapping a two-session streak of record-high finishes. The S&P 500 dropped 91.25 points, or 1.21%, to 7,420.10, while the Nasdaq Composite slid 354.69 points, or 1.34%, to 26,021.66.
(With inputs from agencies)
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
