Asian Markets Rise on US Tech Rally Despite High Treasury Yields
Asian stock markets showed gains on Tuesday, building on a tech-driven rally in the US that lifted the Nasdaq to a record close. Japan's Nikkei rose 1.1% and Hong Kong's Hang Seng climbed 0.7%, while the MSCI Asia-Pacific index remained flat. South Korea's markets dipped nearly 1% as trading resumed after a holiday. European markets were also poised for gains, with futures indicating modest increases.
The Nasdaq's record close came after softer-than-expected US employment data reduced expectations of another Federal Reserve interest rate hike this month. Nvidia, a leading AI chipmaker, surged 2.1%, pushing its market value to $5.76 trillion. Despite this shift in rate expectations, US Treasury yields stayed near 24-year highs, with the 10-year yield at 5.3154% and the 30-year yield at 5.6749%. Inflation and debt concerns continued to weigh on bonds.
Oil prices edged higher, with Brent crude rising 0.6% to $100.88 a barrel after a previous session drop. Currency markets saw the euro under pressure, trading at $1.1215 after hitting its lowest level since May 2025. The US dollar index held steady at 102.2, reflecting recent gains. Meanwhile, spot gold fell 0.4% to $4,121.75 an ounce.