Asian equity markets showed broad gains on Thursday following positive momentum from Wall Street and amid announcement of expanded U.S. government debt purchases. South Korea’s primary benchmark, the Kospi, delivered the region’s strongest performance with a surge of 5.9% to 6,852.58, rebounding sharply from a 5.8% decline recorded the previous day that had been driven by profit-taking in artificial intelligence-related stocks.
The Treasury Department’s declaration that it would at least double planned purchases of longer-term government debt helped support investor sentiment across the region. This move was expected to raise bond prices and reduce yields, potentially alleviating selling pressure on equities that had been generated by elevated bond market activity. In South Korea, semiconductor manufacturers led the rally, with Samsung Electronics advancing 9.5% and SK Hynix climbing 12.7% following the firm’s announcement of a significant share repurchase program.
Japan’s Nikkei 225 index gained 1.4% to 66,216.79, reversing earlier weekly declines, while shares of SoftBank Group, an OpenAI investor and major Japanese holding company, climbed 3.1%. Mainland Chinese markets also participated in the advance, with Hong Kong’s Hang Seng rising 1.2% and the Shanghai Composite increasing 0.2%. Australia’s S&P/ASX 200 added 0.3%, Taiwan’s Taiex gained 0.5%, and India’s Sensex rose 0.7%.
Bond yields across multiple markets declined following the Treasury announcement, with the U.S. 10-year yield falling to approximately 4.65% from 4.71% two days prior, and the 30-year yield dropping to around 5.19% from 5.28%. Japan’s 10-year government bond yield eased to around 2.85% from 2.95%, though it remained near 30-year highs. Oil markets moved modestly upward, with Brent crude gaining 1.4% to $92.88 per barrel and U.S. crude advancing 1.3% to $85.52, amid limited progress in negotiations over the ongoing conflict.
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