Japanese and Australian stock indices climbed on Thursday, even as recession fears resurfaced following disappointing U.S. economic data. With most Asian markets closed for the Labor Day holiday, investor focus shifted to the Bank of Japan’s policy decision, Australia’s trade data, and Wall Street’s volatile performance.
Japan's Nikkei Surges After Central Bank Holds Rates Steady
Japan’s Nikkei 225 rose 1.13% to 36,452.30, while the broader Topix gained 0.46% to 2,679.44. The rally followed the Bank of Japan’s (BOJ) decision to maintain interest rates at 0.5%, a move expected by markets. The BOJ’s unanimous vote signaled policy continuity amid fragile economic conditions.
Government bond yields responded quickly: 10-year Japanese Government Bonds (JGBs) dropped 5.4 basis points to 1.259%, and 20-year JGBs dipped by 1.5 basis points to 2.184%. Meanwhile, the yen weakened by 1.06% against the U.S. dollar, trading at 144.58.
Australian Markets Extend Gains Ahead of National Elections
Australia’s S&P/ASX 200 rose 0.24% to close at 8,145.60, marking its fifth straight positive session. The gains come just before the country’s national elections set for Saturday.
Australia’s trade surplus widened significantly in March to 6.9 billion AUD ($4.42 billion), far exceeding the forecasted 3.9 billion AUD. According to the Australian Bureau of Statistics, the increase was fueled by a rebound in iron ore exports and a surge in gold shipments.
Year-on-year, exports climbed 7.6%, while imports contracted 2.2%, indicating a strong external performance in the face of global economic headwinds.
U.S. Tech Stocks Drive Futures Higher After Strong Earnings
U.S. futures jumped overnight after Meta Platforms and Microsoft — two members of the “Magnificent Seven” — delivered better-than-expected quarterly results.
Meta shares gained more than 4% in after-hours trading, following strong revenue in Q1. Microsoft surged 8% after beating estimates across the board and reporting robust growth in its Azure cloud business, along with optimistic guidance for the next quarter.
Wall Street Extends Winning Streak Despite Volatility
Despite intraday swings, U.S. equity markets logged another day of gains. The S&P 500 closed up 0.15% at 5,569.06, while the Dow Jones Industrial Average rose 0.35% to finish at 40,669.36. The Nasdaq Composite ended flat at 17,446.34.
These gains mark the seventh consecutive winning session for both the S&P 500 and the Dow, signaling underlying market resilience in the face of weak economic signals.
Can Asian Markets Stay Resilient Amid Global Uncertainty?
With major Asian economies balancing local growth dynamics and global volatility, can the region’s markets maintain their upward momentum — or will U.S. recession concerns eventually ripple across the Pacific?
