SINGAPORE – Stocks in Japan jumped on Thursday, despite Wall Street falling with the Nasdaq closing in correction territory and US yields pulling back from their recent gains.
Japan’s Nikkei 225 is up 0.78%, while Topix is up nearly 1%. Sony’s stock jumped 4.63% after falling more than 12% the day before as Microsoft said on Tuesday it was buying video game publisher Activision Blizzard for nearly $69 billion.
Trade data on Thursday showed Japanese exports rose 17.5% in December from a year earlier — higher than the 16% expected in a Reuters poll, according to Reuters.
Elsewhere, South Korea’s Kospi Index is up 0.29%, while Australia’s ASX 200 is down 0.17%.
China is preparing to release the key interest rate for its loan on Thursday. Other economic data coming for today includes Japanese exports for December, as well as Australian jobs data.
In the US, the Nasdaq Composite Index fell again on Wednesday, down 1.15% to 14340.26. This has brought it down from its November high to more than 10% as investors continue to dump tech stocks as interest rates rise.
The Dow Jones Industrial Average fell 339.82 points to 35,028.65, weighed down by a 3.1% decline in Caterpillar stock. The S&P 500 fell nearly 1% to 4,532.76.
US bond yields eased slightly after rising earlier this week, with the 10-year note slipping to 1.854% after hitting 1.9% earlier on Wednesday. The yield on the 30-year Treasury fell 2 basis points to 2.167%. Yields move inversely to prices.
“It is difficult to get too excited with overnight dips in yields, as the economic backdrop continues to point to rising inflationary pressures and resilient growth, which indicates the need for the Fed as well as other central banks to shift toward more hawkish policy,” wrote Rodrigo Cattrell, Senior FX Analyst. At the National Australia Bank, in a note on Thursday:
Elsewhere, concerns about prices continued to be at the forefront as data showed that UK inflation rose to a 30-year high in December, with rising energy costs, rising demand and supply chain issues continuing to drive consumer prices.
Currency and oil
Oil prices rose for a fourth day to a seven-year high overnight, as a pipeline outage from Iraq to Turkey heightened concerns. Brent crude rose to $ 89.05, the highest level since October 13, 2014, while the price of US crude reached 1.8 percent, rising at $ 86.96 a barrel.
During Asian time on Thursday, oil prices fell. US crude was down nearly 1% to $86.14.
In currencies, the US dollar index, which measures the greenback against a basket of its peers, was at 95.617, down slightly from levels above 95.7 previously.
The Japanese yen was trading at 114.39 against the dollar, up from levels above 114.5 earlier. The Australian dollar was at $0.7216, up from the $0.71 level.