Japan Stocks Rebound After Ishiba-Led Slump
The US Federal Reserve Chair emphasised no urgency for further interest-rate cuts.
Stocks in Japan regained some ground Tuesday after a steep decline a day before as Shigeru Ishiba’s victory in the party’s leadership race spooked panic on the rate hike front. Meanwhile, the US Federal Reserve Chair Jerome Powell emphasised no urgency for further interest-rate cuts.
The Japanese benchmark—Nikkei 225—was 1.2% up at 38,367, Australia's S&P ASX 200 was down 0.3% at 8,239 as of 5:41 a.m.
The rebound in Japan's stocks comes a day after the benchmark tumbled almost 5% following the party’s leadership race. Ishiba favoured rate hikes and supported policies for the Central Bank's independence and the country's deflation target, Bloomberg News reported.
Confidence among Japan’s large manufacturers was steady, according to the Bank of Japan's quarterly Tankan survey on Tuesday. An index of sentiment among the country’s biggest manufacturers held steady at 13 in September, while economists had expected the readings to decline to 12.
After a record-breaking rally last week, the Chinese stock market will be closed for seven days, starting Tuesday, Oct. 1, for Golden Week festivities, with holiday consumption in focus. The benchmark index—CSI 300—rose for a ninth straight day with an 8.5% jump on Monday.
Overnight, US Fed's Powell said it will lower rates “over time” toward a more neutral stance and affirmed that the economy remains on solid footing. He said policy is not on a preset course and will do what it needs for a soft landing.
Treasury yields dropped soon after Powell's speech while the dollar jumped against the yen.
Meanwhile, inflation prints for Pakistan and Indonesia will be on traders' watchlists for the session. South Korea will report export growth for September.
The US stocks logged their fourth consecutive quarter of gains but pared gains on Monday at the last trading minute. S&P 500 and Nasdaq Composite climbed 0.42% and 0.38%, respectively. The Dow Jones Industrial Average advanced by 0.04%.
Oil was mixed amid geopolitical risks in West Asia. Brent crude was trading 0.29% lower at $71.77 a barrel as of 6:05 a.m. IST. West Texas Intermediate was up 0.04% at $68.20.
Key Levels
US Dollar Index at 100.80
US 10-year bond yield at 3.77%.
Brent crude down 0.29% at $71.77 per barrel.
Bitcoin was 0.59% down at $63,409.98
Gold spot was down 0.09% at $2,656.9
