Asian stock indexes rose on Thursday in response to the recovery in U.S. equity markets on Wednesday, but gains were limited by concerns over rising U.S. Treasury yields.
In Japan, the Nikkei 225 jumped 1.42 percent after closing barely in the black in the last session. The rally was led by strength in the financials, automakers and manufacturer sectors. Technology stocks were mixed.
In South Korea, the Kospi gained 1.04 percent after finishing in negative territory on Wednesday. Technology stocks contributed the most to the gains. The manufacturing sector was mixed.
The Australian S&P/ASX 200 edged up 0.24 percent as losses in the energy and materials sectors were offset by gains in the heavily weighted financials sub-index, which rose 0.75 percent.
China
Trade data released early Thursday showed dollar-denominated imports in January rose 36.9 percent, topping the 9.8 percent forecast in a Reuters poll. Meanwhile, exports in dollar terms increased 11.1 percent, above the 9.6 percent projected. The country’s surplus, however, missed expectations.
U.S. Stocks
The major U.S. stock market indexes finished lower on Wednesday despite posting solid gains most of the session, with the S&P 500 Index recording its largest one-day reversal since February 2016. The indexes pared early gains shortly before the close following a rise in the yield of the 10-year U.S. Treasury Note.
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The New Zealand Dollar hit a one-month low after the country’s central bank kept interest rates on hold earlier in the day.
The Euro traded steady after the currency declined the previous session despite news of a breakthrough in coalition talks in Germany.
Crude Oil
U.S. West Texas Intermediate and international-benchmark Brent crude oil plunged to a one-month low, following a U.S. government report that showed U.S. crude inventories and production rose last week. Some support was being generated by the second outage in as many months on the 450,000 barrels per day Forties pipeline network, Britain’s biggest. This news underpinned Brent oil futures.
In other news, the U.S. Energy Information Administration said U.S. crude oil output averaged above 10 million barrels per day (bpd) for the first time since the early 1070s last week, reaching 10.25 million bpd.
Gold
Gold prices dropped for a third day in reaction to a stronger U.S. Dollar and expectations of at least three Fed rate hikes later this year. Helping to fuel some of the losses were comments from San Francisco Federal Reserve Bank President John Williams who said, the Federal Reserve will stick to its plan for “steady, gradual” interest-rate increases.