Source: Sharecast
The upward trend followed a volatile session on Wall Street, where concerns over a potential US recession were reinforced by first-quarter economic data showing contraction.
“The yen weakened for a third consecutive day as the Bank of Japan kept its benchmark rate at 0.5% and postponed its timeline for achieving its inflation target,” commented TickMill market strategy partner Patrick Munnelly.
“Treasury yields in Asia dipped slightly, while the dollar index increased.
“Investor sentiment towards US equities improved on Wednesday after president Donald Trump's trade representative suggested the country was close to unveiling its first set of trade agreements, which would involve reducing planned tariffs on trading partners.
“Trump acknowledged potential political risks from his extensive tariff policy but emphasised he would not rush deals just to appease anxious investors.”
Markets rise on quiet day for region
In Japan, the Nikkei 225 climbed 1.13% to 36,452.30, led by strong performances from Sumitomo Dainippon Pharma, which surged 13.6%, Central Japan Railway, up 9.76%, and chipmaker Advantest, which rose 6.89%.
The broader Topix index added 0.46% to 2,679.44.
Investor sentiment was buoyed by the Bank of Japan's decision to keep its benchmark interest rate steady at 0.5%, as widely expected.
The central bank’s move prompted a decline in government bond yields, with the 10-year JGB yield falling 5.4 basis points to 1.259%.
Australia’s S&P/ASX 200 rose 0.24% to 8,145.60, with notable gains in Platinum Asset Management, up 12.28%, Wisetech Global, which gained 6.61%, and Mesoblast, which rose 4.74%.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 jumped 2.06% to 12,148.60, supported by advances in real estate and tourism-related stocks.
Markets in China, Hong Kong, South Korea, and India remained closed for holiday observances.
In currency markets, the dollar was last up 0.91% on the yen, trading at JPY 144.37, as it gained 0.36% against the Aussie to AUD 1.5677, and advanced 0.28% against the Kiwi, changing hands at NZD 1.6896.
Oil prices were in the red, with Brent crude futures last down 2.34% on ICE at $59.63, and the NYMEX quote for West Texas Intermediate off 2.63% at $56.68.
Bank of Japan holds interest rates, Australia trade surplus surges
Japan’s central bank held its benchmark interest rate at 0.5% on Thursday, maintaining its stance for a second consecutive meeting amid persistent trade tensions and external economic headwinds.
The decision matched expectations and came as the Bank of Japan acknowledged a more cautious outlook, citing weaker global demand and falling corporate profits at home.
While headline inflation had exceeded the BoJ’s 2% target for three years, supporting the case for rate normalisation, the central bank noted that ongoing trade disputes - particularly US tariffs - were complicating the recovery.
The BoJ reiterated its intention to continue raising rates if its projections for growth and inflation materialise.
It said it now expected inflation to remain between 2% and 2.5% for the 2025 financial year, before easing slightly in the following years.
Japan’s next major data release - GDP figures for the first quarter - is due on 16 May.
The economy grew just 0.1% in 2024, a sharp slowdown from 1.5% in 2023.
In Australia, the trade surplus in goods surged to AUD 6.9bn in March, up from a revised AUD 2.85bn in February, according to official data released on Thursday.
The result far exceeded forecasts and was driven by a rebound in iron ore exports and strong gold shipments.
Exports rose 7.6% from a year earlier, while imports declined 2.2%, suggesting solid external demand and a moderation in domestic consumption.
Reporting by Josh White for Sharecast.com.