Key Points:
- Asian stocks rebound amid mixed cues on U.S. interest rate cuts and ongoing fragility post-Taiwan earthquake.
- Japan’s Nikkei 225 index notably rebounded by 0.81% after enduring three consecutive losses. Similarly, the broader TOPIX index also surged by 0.94%.
- Australia’s ASX 200 index climbed by 0.45%, maintaining proximity to record highs, while South Korea’s KOSPI rose by 1.29%, nearing a two-year peak.
- The Taiwan Weighted Index faced a setback, closing 0.6% lower on Wednesday following the severe earthquake; TSMC incurred a 1.3% loss.
On Thursday, most Asian stocks staged a recovery, aiming to offset recent steep losses despite lingering fragility in sentiment following a devastating earthquake in Taiwan. The region’s markets, however, faced mixed cues regarding potential U.S. interest rate cuts, coupled with anticipation surrounding further comments from Federal Reserve officials and the release of key nonfarm payroll data in the upcoming days.
Japan’s Nikkei 225 index notably rebounded by 0.81% after enduring three consecutive losses. The index grappled with profit-taking pressures and concerns over potential hawkish measures from the Bank of Japan amid signs of rising Japanese inflation. Similarly, the broader TOPIX index also surged by 0.94%, returning from recent downturns.
Export-oriented Japanese stocks benefited from the persistent weakness in the yen, driving gains in the Nikkei index. Meanwhile, broader Asian markets saw advancements after experiencing significant losses at the onset of the second quarter, with several regional indexes undergoing profit-taking activities following a strong performance in the first three months of 2024.
Australia’s ASX 200 index climbed by 0.45%, maintaining proximity to record highs, while South Korea’s KOSPI rose by 1.29%, nearing a two-year peak. However, the Taiwan Weighted Index faced a setback, closing 0.6% lower on Wednesday following the severe earthquake, marking the island state’s worst in 25 years. Taiwan Semiconductor Manufacturing Co. (TSMC) incurred a 1.3% loss after evacuating some factory areas in response to the earthquake.
Indian stocks remained focused as futures for India’s Nifty 50 index indicated a positive opening, staying above the closely watched 22,000 level. However, apprehension loomed over the upcoming Reserve Bank of India (RBI) meeting on Friday, where rates are expected to remain unchanged, but scrutiny remains high regarding inflation and economic growth signals.
