Asia-Pacific markets rose on Thursday, defying a sharp overnight sell-off on Wall Street after United States Federal Reserve Chair Jerome Powell warned that trade tensions may complicate efforts to curb inflation and support economic growth.
By 11:15 am AEST (1:15 am GMT) Australia’s S&P/ASX 200 ticked up 0.2%, Japan’s Nikkei 225 climbed 0.6%, South Korea’s Kospi 200 rose 0.5%.
Among data releases, The Bank of Korea left its benchmark interest rate unchanged at 2.75%, in line with market expectations.
The translated press releases noted that “while prices continue to show a stable trend, the downside risks to growth have expanded due to the economic slowdown in the first quarter and the deterioration of global trade conditions”.
Japan reported a 3.9% year-on-year rise in exports for March, missing forecasts for a 4.5% increase and well below February’s 11.4% surge.
In New Zealand, inflation lifted to 2.5% on an annualised basis, ahead of the expected 2.3% rise due to rising fuel, housing, and education costs.
However, price growth remains within the Reserve Bank’s target range and is unlikely to deter policymakers from considering further interest rate cuts.
Australia's unemployment rate also lifted to 4.1% in March, higher than last month's reading of 4.0%, but beating expecations of a 4.2% rise.
The upbeat performance in Asia contrasted with a broad decline on Wall Street overnight. The Dow Jones Industrial Average lost 699.57 points, or 1.7%, while the S&P 500 fell 2.2% and the Nasdaq Composite dropped 3.1%.
In commodity markets, Brent crude gained 1.8% to trade at US$65.85 per barrel amid ongoing supply concerns. Spot gold surged 3.5% to a fresh record highs of US$3,343.10 per ounce, as investors sought refuge from ongoing market volatility.
In China, the Shanghai Composite rose 0.3% to 3,276.0, while the CSI 300 also added 0.3% to close at 3,772.8.
Hong Kong’s Hang Seng Index, however, fell 1.9% to 21,057.0.
India’s BSE Sensex bucked the regional trend, gaining 0.4% to reach 77,044.3.
In Europe, markets showed a mixed performance. The UK’s FTSE 100 rose 0.3% to 8,275.6, Germany’s DAX added 0.3% to 21,311.0, while France’s CAC 40 edged down 0.1% to 7,330.0.
