Asian Stocks Rise as US Inflation Data Looms Amid Steady Treasury Yields
Asian stocks rose on Wednesday as investors awaited key US inflation data for clues on the Federal Reserve's next moves. The MSCI Asia Pacific Index gained 0.9%, with 10 of its 11 industry groups advancing.
The Nikkei 225 in Japan rose 1.4%, while the broader Topix gained 0.6%. South Korea's Kospi and Kosdaq both advanced more than 1%, while Australia's S&P/ASX 200 was marginally higher.
US Treasury yields steadied across the curve after climbing sharply earlier in the week. The 30-year Treasury yield reached 5.6206% on Tuesday, its highest level since June 2002, and retreated to 5.52%. The average 30-year fixed mortgage rate reached 7.58%, its highest level since November 2023.
Markets have been reassessing the outlook for interest rates after the Fed signaled that borrowing costs could rise further. New York Fed President John Williams said the central bank has time to assess incoming data before deciding when to raise rates again.