Stocks rose in Asia after the rise of US stocks and the wave of selling in Treasury bonds, as investors assessed the new data that indicated further tightening of monetary policy by the Federal Reserve in the future.
Stocks rose in Australia, South Korea, Japan and China. Hong Kong stocks rose to halt four days of declines.
US stock futures rose after the S&P 500 rose 0.3% to close at its highest level in Wednesday’s session, while the Nasdaq 100 ended trading 0.8% higher.
The Australian dollar was flat after initially falling amid a sudden rise in the unemployment rate, suggesting that higher interest rates are weighing on the economy. The news dampened the rise in government bond yields. New Zealand yields rose while the 10-year Treasury yield remained flat after increasing six basis points on Wednesday. The dollar stabilized and the yen rose.
US stock gains on Wednesday came as investors shrugged off strong economic data that would force the Federal Reserve to take a more hawkish monetary policy response. US retail sales jumped in January by the most in nearly two years, and homebuilder sentiment rose in February by the most since mid-2020.
read more: US stocks rose thanks to a “moderate” mood among investors
The data comes after inflation rose to a higher-than-expected level on Tuesday, and comes ahead of US employment data due on Thursday, which is expected to show a rise in jobless claims.
“The market is telling us that maybe we can continue (buying risk assets) as long as inflation is down overall and growth is strong,” Quincy Crosby, chief global strategist at LBL Financial, said in an interview with Bloomberg Television.
