Asian shares mostly gained ground on Thursday following another record-setting session on Wall Street, despite mixed performances in Chinese markets. U.S. stock futures held steady, while oil prices declined.
On Wednesday, U.S. equities extended their ascent in a shortened trading day, buoyed by disappointing economic data that heightened expectations of potential interest rate cuts by the Federal Reserve.
U.S. markets will be closed Thursday for the Independence Day holiday.
Investors globally are closely monitoring the Federal Reserve’s stance on interest rates, which have remained at their highest levels in two decades to curb inflation and economic growth.
In Tokyo, the Nikkei 225 rose 0.6% to 40,815.95, supported by gains in automakers’ and export-oriented stocks, keeping the index near 35-year highs. Toyota Motor Corp. advanced 1.3%, while Advantest Corp., a computer testing equipment maker, gained 2.4%.
Hong Kong’s Hang Seng recovered from early losses to edge up 0.1% to 17,988.25, whereas the Shanghai Composite index declined 0.4% to 2,969.45.
Taiwan’s Taiex surged 1.2%, led by Taiwan Semiconductor Manufacturing Corp., which climbed 2.7%.
Australia’s S&P/ASX 200 jumped 1% to 7,815.80, and South Korea’s Kospi gained 0.7% to 2,813.54. Thailand’s SET Index rose 1%.
On Wall Street, the S&P 500 closed up 0.5% at a record high of 5,537.02 on Wednesday, marking its second consecutive day of reaching new peaks and the 33rd such instance this year. The Dow Jones Industrial Average dipped 0.1% to 39,308.00, while the Nasdaq composite rose 0.9% to 18,188.30.
Tesla contributed significantly to the S&P 500’s gains, climbing 6.5% after reporting better-than-feared sales figures for the spring. Nvidia also boosted the index, rising 4.6% and extending its year-to-date gain to 159%.
In the bond market, Treasury yields declined after several weaker-than-expected reports on U.S. job market and service sector activity. This data reinforced expectations for future interest rate cuts by the Federal Reserve.
A key report on Friday will provide insight into June’s employment figures, which will be closely watched by investors for further signals on the economy’s health.
The yield on the 10-year Treasury fell to 4.35% from 4.44% late Tuesday, marking a notable move in bond markets as expectations grow for slowing inflation and potential rate cuts by the Federal Reserve.
In commodities, U.S. benchmark crude oil fell 56 cents to $83.32 per barrel on the New York Mercantile Exchange, while Brent crude, the international standard, declined 51 cents to $86.83 per barrel.
The U.S. dollar weakened to 161.50 Japanese yen, reflecting anticipation of narrower interest rate differentials between the U.S. and Japan, where benchmark rates are near zero. The euro held steady at $1.0787.
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