Asian Shares Advance As Rate Hike Worries Ease

Asian stocks advanced on Thursday after oil prices tumbled and bond yields on both sides of the Atlantic fell from their highest levels for more than a decade amid signs U.S. economic growth is slowing.

As concerns around inflation and interest rates ease, investors looked ahead to the release of key U.S. nonfarm payrolls data on Friday for further direction.

The dollar fell against its major rivals as the bond sell-off abated. Crude prices saw modest gains in Asian trading after plunging more than $5 a barrel on Wednesday.

Mainland Chinese markets remained closed for the Golden Week holiday. Hong Kong’s Hang Seng Index finished 0.1 percent higher at 17,213.87 as investors hunted bargains following a recent string of losses. Tencent Holdings and Baidu both rose about 1 percent.

Japanese shares rallied to snap a five-day losing streak after U.S. Treasury yields retreated. The Nikkei 225 Index jumped 1.8 percent to 31,075.36, while the broader Topix Index settled 2.0 percent higher at 2,263.76.

Among the top gainers, chip-testing equipment maker Advantest soared 5.1 percent. Automakers Honda Motor, Nissan and Toyota surged 3-5 percent.

Seoul stocks fluctuated before ending on a flat note. The Kospi ended marginally lower at 2,403.60 after data showed inflation accelerated in September due to higher energy and food prices.

Market bellwether Samsung Electronics gave up 1.2 percent, while No. 2 chipmaker SK Hynix rallied 4.2 percent on expectations that memory chip prices will go up in the fourth quarter. LG Chem, LG Energy Solution and Samsung Biologics jumped 3-5 percent.

Australian markets closed higher to snap a three-day losing streak, with tech and real estate stocks leading the rebound. Miners and energy stocks bucked the uptrend.

The benchmark S&P ASX 200 Index rose 0.5 percent to 6,925.50, while the broader All Ordinaries Index gained half a percent to close at 7,117.50.

Across the Tasman, New Zealand’s benchmark S&P NZX-50 Index climbed 0.7 percent to 11,309.10.

U.S. stocks rebounded from four-month lows overnight, as bond yields pulled back from 16-year highs after data showed private-sector employers added 89,000 jobs in September, the fewest since January 2021, helping calm some fears over high interest rates. A separate report revealed growth in the U.S. services sector slowed in September.

The Dow added 0.4 percent to snap a three-day losing streak, while the tech-heavy Nasdaq Composite rallied 1.4 percent and the S&P 500 climbed 0.8 percent.

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