Asian markets mixed as sentiment lifted by Wall Street's record close

[Global Business Strategy on Digital Display]
Tom Werner

Asia indexes traded mixed on Thursday as sentiment was lifted by record closes for Wall Street's S&P 500 and Nasdaq for the second day overnight, as traders increased bets on a U.S. Fed rate cut next month.

Gold prices climbed toward $3,370 per ounce, marking a third consecutive gain as traders increased bets on the Fed resuming interest rate cuts. Bitcoin climbed above $123,000 on Thursday, setting a new record, fueled by rising institutional adoption and expectations of monetary easing.

Japan (NKY:IND [https://seekingalpha.com/symbol/NKY:IND]) dropped 1.41% to 42,676, as investors took profits and sentiment weakened on the latest trade figures.

Japan’s 10-year government bond yield climbed above 1.52% on Thursday, its fourth straight daily rise, as pressure mounts on the Bank of Japan to drop its reliance on an inflation measure tied to domestic demand and wages. The Japanese yen strengthened to around 146.5 per dollar on Thursday, its highest level in three weeks.

China (SHCOMP [https://seekingalpha.com/symbol/SHCOMP]) rose 0.50% trading close to 3,700 as it approaches its highest level since August 2015, as upbeat signals from US-China trade talks lifted sentiment.

China earmarked $25.9 billion from its 2025 ultra-long special treasury bond funds to back equipment upgrades across major sectors, the National Development and Reform Commission said Wednesday. The offshore yuan strengthened past 7.17 per dollar on Thursday.

Hong Kong (HSI [https://seekingalpha.com/symbol/HSI]) declined 0.37% to 25,519; however, overall sentiment was lifted.

South Korea’s government will unveil a plan this month to restructure the country’s struggling petrochemical sector, which is in a “grave” situation, Industry Minister Kim Jung-kwan said on Thursday.

India (SENSEX [https://seekingalpha.com/symbol/SENSEX]) rose 0.21% to 80,711, extending gains for a second straight session. The index tracked an upbeat session on Wall Street on Wednesday, as expectations of a Fed rate cut in September continued to lift market sentiment.

Australia (AS51 [https://seekingalpha.com/symbol/AS51]) gained 0.50% to trade 8,870 on Australia unemployment rate drops to 4.2% in July. [https://seekingalpha.com/news/4485123-australia-unemployment-rate-drops-to-42-in-july#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]Australia’s 10-year government bond yield stabilized at 4.20% on Thursday, halting a three-day decline as investors assessed the latest labour market data. The Australian dollar rose to around $0.656 on Thursday, marking its third straight session of gains.

U.S. stocks advanced to mark record closes [https://seekingalpha.com/news/4484662-sp500-nasdaq-composite-dow-jones-stock-news-today] on Wednesday, while the Dow Jones (DJI [https://seekingalpha.com/symbol/DJI]) ended just 91.77 points away from its record close, as a rally sparked by heightened expectations for Federal Reserve rate cuts continued.

U.S. stock futures traded in red on Thursday: Dow -0.05%; S&P 500 -0.11%; Nasdaq -0.12%.

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