Asia-Pacific markets mostly rose on Thursday following US President Donald Trump’s decision to delay tariffs on certain automakers, boosting investor sentiment, CNBC reports.
Meanwhile, Japanese government bond yields surged, reaching their highest levels in nearly 16 years.
Japan’s Nikkei 225 climbed 0.77%, closing at 37,704.93, while the Topix index gained 1.22% to finish at 2,751.41. South Korea’s Kospi advanced 0.7% to close at 2,576.16, though the small-cap Kosdaq dropped 1.61%.
In China, Hong Kong’s Hang Seng Index opened 2.47% higher, while the CSI 300 index rose 1.38% to close at 3,956.24. The gains followed Beijing’s announcement of a rare fiscal deficit increase to 4% of GDP, signaling more government support for economic growth.
However, Australia’s S&P/ASX 200 declined 0.57%, closing at 8,094.7.
The White House announced a one-month postponement of tariffs on automakers that comply with the United States-Mexico-Canada Agreement (USMCA) trade rules. Trump also signaled openness to further exemptions, easing concerns about trade disruptions.
This decision contributed to a rebound in US markets overnight, with the Dow Jones Industrial Average rising 1.14% to 43,006.59 after a sharp two-day selloff. The S&P 500 gained 1.12%, while the Nasdaq Composite jumped 1.46%.
While stocks climbed, Japan’s bond market saw significant yield increases. The 10-year Japanese government bond (JGB) yield hit its highest level since 2009, surging nearly 8 basis points to 1.5%.
Analysts attributed the JGB sell-off to expectations of a Bank of Japan rate hike and global bond market pressures. The 30-year JGB yield also rose, exceeding 2.5% for the first time since 2008.
