Macro Update
Asian stocks track Wall Street higher: MSCI’s Asia-Pacific index climbed 0.8% after the S&P 500 and Nasdaq 100 posted their strongest session since early August, with US equity futures pointing to further gains while European shares were set for a slightly weaker open.
Bank of Japan raises rates in split decision: Policymakers lifted the benchmark rate by 25 basis points to 1.25%, with two board members dissenting, sending the yen to around ¥157.20 per dollar and shifting focus to Governor Kazuo Ueda’s press conference.
Oil falls for a third consecutive session: Brent crude dropped 1.2% to around $103.50 a barrel as supply concerns eased and traders turned their attention to the next round of US-Iran diplomacy, helping to temper near-term inflation pressures.
Chipmakers rally on Nvidia outlook: Samsung Electronics, SK Hynix and other Asian semiconductor stocks advanced after Nvidia delivered an upbeat outlook, lifting sentiment across the sector.
Treasuries retain overnight gains: The 10-year Treasury yield held around 4.93% in Asian trading after falling nine basis points in New York as weaker oil prices eased inflation concerns, with Australian and New Zealand government bonds following the move.
Triple witching comes into focus: More than $2 trillion in notional value of stock, index and futures options is due to expire on Friday, potentially increasing market volatility as investors reposition ahead of the expiries.
