TOKYO : Japan and Hong Kong led a jump in regional stocks on Thursday, joining a rally on Wall Street overnight as potential risks from Federal Reserve monetary tightening to the Ukraine war and a slowdown in China became less murky.
Meawhile, investor concerns about a sharp slowdown for China, which is battling a spreading COVID-19 outbreak with ultra-restrictive measures, were assuaged on Wednesday after Vice Premier Liu He signalled more stimulus to support markets. Stocks stayed strong despite the Fed's more hawkish tilt because Chair Jerome Powell"emphasised that the economy was strong enough to withstand hikes, saying he wasn't concerned by the possibility of a recession," National Australia Bank economist Taylor Nugent wrote in a client note.
The two-year Treasury yield hit 2.002per cent after the Fed decision before easing to 1.9235per cent in Tokyo trading, while the 10-year yield jumped to 2.2460per cent and then eased to 2.1545per cent on Thursday. Both levels were the highest since May 2019.
Well done, CNA. Ukraine will not get peace without your tweets.