Asian Markets Rally Amid Yen Intervention and ECB Jitters

The Asian markets continued their rally in semiconductor and AI stocks, driven by positive fundamental data from China and Japan. The Chinese trade surplus widened significantly, with exports of semiconductor technology being a major contributor.

Meanwhile, the Bank of Japan is intervening heavily to defend the yen's weakness, which could lead to higher US Treasury yields as investors take out cheap yen-denominated loans and invest in government bonds.

Brent crude prices are approaching $100 a barrel, adding to price pressures and weighing on consumer sentiment. This has brought attention to the European Central Bank's upcoming meeting, where Christine Lagarde will address whether a single rate hike can control inflation without jeopardizing the economic recovery.

Germany released mixed economic data, with a trade surplus of €21.3 billion, significantly above expectations, but exports fell by 0.8%, compared to an expected increase of 0.3%.