Oct. 10 saw major Asian and European stocks surge higher owing to a wave of risk appetite.
Another major factor that played a key role in the bullish resurgence of European and Asian stocks was the United States Federal Reserve’s optimistic outlook on bond yields.
U.S. Treasury yields fell sharply on Tuesday, with Federal Reserve officials hinting that the central bank may be done raising interest rates. Fed Vice Chair Philip Jefferson said the institution may “proceed carefully” in determining whether any additional rate rises are necessary, while Dallas Fed President Lorie Logan suggested that rising Treasury yields might prevent the Fed from doing so.
The early-week rush into supposedly safe assets like the dollar, gold and government bonds calmed considerably on Tuesday, while oil prices also saw a retreat from their spike on Monday.
The Asian stock market surged higher on Tuesday, led by Japan’s bullish momentum. Japan’s benchmark index, the Nikkei 225, registered a rise of more than 2.4%, closing the day at 31,763.50 points and leading stock advances in the region just a day after the nation returned from a national holiday.
The rise in Japan’s benchmark index was fueled by a surge in oil and gas exploration company Inpex Corporation, which registered the largest increase of 8.6%.
South Korea’s leading Kosdaq Index fell 2.62% to close at 795 — its lowest level since March 16 — while the Kospi Index reversed previous gains to dip 0.26% and finish at 2,402.58, its lowest level since March 21.
Hong Kong’s benchmark Hang Seng Index saw an increase of 0.84% in its final hour due to Fed’s hawkish comments. On the other hand, mainland Chinese markets were down, with the CSI 300 index declining 0.75% to 3,657.13, marking a third
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