South Korea’s Kospi jumps 5.8% as Asian stocks rise after bond rally
MSCI’s Asia Pacific index rises 1.6%, snapping a two-day losing streak
Asian markets continued to climb on Thursday (Aug 20) as US plans to buy back longer-dated Treasuries to control borrowing costs lifted investor sentiment. MSCI's Asia Pacific index rose 1.6%, ending a two-day decline. South Korea's Kospi gained 5.8%, propelling the country's stock market higher. Global bonds also benefited from the rally, as investors sought higher yields to offset inflation risks and growing government debt.
The sell-off in bonds was triggered by concerns over a potential Middle East conflict, which added to pressure on stocks. The US dollar steadied after falling to a three-month low, while US sovereign debt rallied after the Treasury announced it would double the size of its bond buybacks. The 30-year yield dropped one basis point to 5.18%, and the 10-year yield fell by a similar margin to 4.63%.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
