Nikkei: High bond yields dampen interest rate hopes at Asian stock exchanges
The US yield on ten-year bonds is 5.3 percent, marking the highest level in 24 years. Nevertheless, the Nikkei gains more than two percent, driven by Micron's quarterly figures.
The prospect of a pause in US interest rates has only slightly brightened investor sentiment on Asian stock markets, according to Nikkei. Data released on Wednesday indicated that US inflation in August had risen less than expected. This reduced the likelihood of further interest rate hikes by the US Federal Reserve (Fed) before October.
Meanwhile, investors remained cautious due to the high yields on long-term bonds and soaring oil prices. In Tokyo, the Nikkei Index rose by 2.4 percent, with chip values particularly in demand following strong results from US firm Micron. Korean markets, however, showed little movement. The Shanghai markets were closed due to the celebration.
Charu Chanana, an investment strategist at Saxo, explained, "While the weaker US data has taken the pressure off Fed expectations and short-term returns, the concern about capital costs remains, as long-term returns stay elevated." The key US inflation indicator remained at 3.4 percent.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
