Asia-Pacific markets rebounded on Thursday, tracking overnight gains in United States technology stocks that lifted the S&P 500 and Nasdaq Composite, though ongoing concerns about the global economy kept investors cautious.
By 11:35 am AEST (1:35 am GMT), Australia’s S&P/ASX 200 was up 0.7%, Japan’s Nikkei 225 climbed 1.1%, and South Korea’s Kospi 200 added 0.3%.
In Australia, monthly household spending rose 0.5% in July on a seasonally adjusted basis, according to fresh figures from the Australian Bureau of Statistics (ABS), outpacing expectations.
“Household spending is 5.1% higher than the same time last year. This is the highest annual growth since November 2023,” said Robert Ewing, ABS head of business statistics.
Strengthening consumer spending is sure to dampen further rate cut expectations from the Australia Reserve Bank, as Governer Michele Bullock recently highlighted.
Trade figures also surprised to the upside, with a surplus of A$7.31 billion in July, up $1.94 billion from June’s $5.37 billion.
Imports declined 1.3%, driven by weaker non-monetary gold demand, while exports rose 3.3% on stronger non-rural goods shipments.
Global bond markets remain a key focus, with borrowing costs continuing to rise. The U.S. 30-year Treasury yield briefly topped 5% for the first time since July on Wednesday, before retreating, after a court ruled that most of the Trump administration’s tariffs were illegal, raising questions over tariff revenues.
In Japan, the 30-year bond yield hit a record high, extending a 100 basis point surge this year amid persistent inflation, low real rates and political uncertainty.
On Wall Street overnight, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 added 0.5% and the Nasdaq Composite gained 1%, lifted by technology stocks including Alphabet and Apple.
Commodities markets showed mixed moves. Brent crude fell 2.2% from multi-week highs to settle at US$67.60 per barrel, while spot gold extended gains, rising 0.7% to reach a new record of $3,559.26 per ounce.
In China, equities remained under pressure. The Shanghai Composite declined 1.2% to 3,816.6, while the CSI 300 slipped 0.7% to 4,459.8.
Hong Kong’s Hang Seng Index also weakened, finishing 0.6% lower at 25,343.4. By contrast, India’s BSE Sensex rose 0.5% to close at 80,567.7.
European markets finished Wednesday higher, with London’s FTSE 100 up 0.7% to 9,178.0, Germany’s DAX climbing 0.5% to 23,594.8, and France’s CAC 40 advancing 0.9% to 7,719.7.
