Asian stocks rally as South Korea leads gains, US Treasury expands bond buying
Asian markets rose on Thursday, driven by a near-6% jump in South Korea’s Kospi, while the US Treasury announced larger purchases of long-term debt, easing bond-market pressure.
Asian equity markets advanced on Thursday, following Wall Street gains. South Korea’s benchmark Kospi climbed 5.9% to 6,852.58 after a 5.8% drop the previous day, boosted by a 9.5% rise in Samsung Electronics and a 12.7% surge in SK Hynix after the chipmaker disclosed a major share-buyback plan. Japan’s Nikkei 225 rose 1.4% to 66,216.79, reversing earlier declines, while Hong Kong’s Hang Seng gained 1.2% and the Shanghai Composite edged up 0.2%.
In the United States, Treasury Department officials said the agency would at least double its planned purchases of longer-term government debt. The move is expected to lift bond prices and lower yields, easing pressure on equities. U.S. Treasury yields fell, with the 10-year note dropping to about 4.65% and the 30-year to roughly 5.19%.
European markets opened lower, but the mixed U.S. futures reflected the Treasury’s announcement. In other Asian markets, Australia’s S&P/ASX 200 rose 0.3%, Taiwan’s Taiex added 0.5%, and India’s Sensex climbed 0.7%.
Oil prices edged higher, with Brent crude up 1.4% to $92.88 a barrel and U.S. benchmark crude gaining 1.3% to $85.52, amid limited progress in U.S.–Iran talks. The dollar strengthened to 158.53 yen, while the euro slipped to $1.1683.