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Stock markets across Asia climbed Thursday in tandem with Wall Street momentum, driven by a significant announcement from the U.S. Treasury Department regarding government debt purchases. South Korea’s Kospi index led regional gains with a 6.1% jump to 6,858.91, reversing steep losses from the prior day when the benchmark fell 5.8% amid technology sector volatility.
The U.S. Treasury’s decision to at least double the scope of its longer-term government debt acquisitions provided the primary catalyst for improved investor sentiment. By expanding bond purchases, the department aims to increase bond prices while simultaneously reducing yields—a dynamic that alleviates pressure on equity valuations that often suffer during periods of elevated interest rates.
South Korean semiconductor manufacturers delivered particularly strong performances on the day. Samsung Electronics surged 9.7%, while memory chipmaker SK Hynix climbed 14.1% following the company’s announcement of a substantial share repurchase initiative.
Japan’s Nikkei 225 advanced 1.3% to 66,178.26 after earlier-week declines, though the nation reported its third consecutive monthly trade deficit in July despite record-high import and export volumes. SoftBank Group shares rose 3.8%, buoyed by the company’s investment stakes in artificial intelligence ventures.
Additional regional indexes posted modest gains: Hong Kong’s Hang Seng increased 1.1% to 25,786.32, Shanghai’s Composite rose 0.3% to 3,905.23, Australia’s S&P/ASX 200 climbed 0.3% to 9,066.40, and India’s Sensex gained 0.7%. Taiwan’s Taiex remained essentially flat.
U.S. Treasury yields declined following the announcement, with the 10-year yield falling to approximately 4.64% from 4.71% on Tuesday and the 30-year yield dropping to 5.18% from 5.28%. Bond yields move inversely to bond prices, rising when prices fall and declining when prices rise.
Wall Street closed Wednesday with modest gains as investor anxiety over elevated yields began to ease. The S&P 500 advanced 0.2% for its first daily gain in four sessions, while the Dow Jones Industrial Average and Nasdaq composite each gained 0.2%.
Recent yield increases stemmed from inflation concerns tied to the monthslong war in Iran and mounting government debt levels. Asian bond markets also benefited from easing yields following the Treasury’s announcement, with Japan’s 10-year government bond yield falling to around 2.83% from more than 2.89% on Wednesday.
Oil markets moved marginally higher as negotiations between the United States and Iran showed limited progress. Brent crude, the global benchmark, gained 0.3% to $91.90 per barrel, compared to roughly $72 before the war began. U.S. benchmark crude edged 0.2% higher to $84.57 per barrel.
Currency markets showed minimal movement, with the U.S. dollar strengthening to 158.60 Japanese yen from 158.16 yen. The euro traded at $1.1676, down marginally from $1.1677.
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