Source: Sharecast
Patrick Munnelly, market strategy partner at TickMill Group, said Asian equities rebounded for the first time in four days as data showed resilience in the US labour market, easing fears that Trump’s tariff policies were pushing the global economy towards a slowdown.
“The Asian regional benchmark rose, while South Korea’s Kospi Index surged 2.5% following the election of a new president, ending six months of political instability,” he noted.
“The dollar dipped , and the 10-year Treasury yield declined by 1 basis point to 4.44%.
“US equity-index futures remained mostly flat, while European stock futures edged up 0.2%.”
Munnelly noted that Asian semiconductor stocks rallied alongside their US counterparts, buoyed by a recovery in AI-driven commerce.
“In corporate developments, Toyota shares plunged as much as 13% - the steepest drop in nine months - after announcing a privatisation deal.
“The plan faced heavy criticism from investors and analysts, who argued it undervalues the company significantly.
“Separately, Trump escalated steel and aluminium tariffs to 50% from 25%, fulfilling his pledge to support domestic manufacturers.”
Market rise across the region
In South Korea, the Kospi 100 surged 2.75% to 2,760.96, leading regional performance as investors welcomed president-elect Lee’s pledges to enhance minority shareholder protections and implement aggressive fiscal stimulus.
Shares of Mirae Asset Daewoo Securities soared 13.25%, SK Square climbed 13.06%, and SK Holdings advanced 10.59%.
Japan’s Nikkei 225 rose 0.85% to 37,747.45, supported by gains in technology and consumer shares.
Furukawa Electric gained 6.31%, Tokuyama rose 6.01%, and Shiseido climbed 5.94%.
The broader Topix index added 0.51% to close at 2,785.13.
In China, the Shanghai Composite increased 0.42% to 3,376.20, while the Shenzhen Component rose 0.87% to 10,144.58.
Top performers included Nuode Investment Co, Harbin VITI Electronics, and Leysen Jewellery, all of which rose more than 10%.
Hong Kong’s Hang Seng Index gained 0.6% to 23,654.03, lifted by healthcare stocks.
CSPC Pharmaceutical Group rose 4.14%, Sino Biopharmaceutical gained 3.13%, and Hansoh Pharmaceutical Group advanced 3.02%.
Australia’s S&P/ASX 200 climbed 0.89% to 8,541.80, led by risk appetite in small-cap and resource sectors.
Zip Co jumped 13.37%, Pointsbet Holdings added 11.06%, and Mineral Resources rose 9.19%.
New Zealand’s S&P/NZX 50 index was up 1.36% at 12,494.71.
Mercury NZ rose 4.24%, Vector gained 4.22%, and Eroad added 4.17%.
In currency markets, the dollar was last up 0.09% on the yen to trade at JPY 144.10, while it declined 0.19% against the Aussie to AUD 1.5444, and fell 0.23% on the Kiwi, changing hands at NZD 1.6635.
Oil prices rose modestly, with Brent crude futures last up 0.32% on ICE at $65.84 per barrel, and the NYMEX quote for West Texas Intermediate gaining 0.35% to $63.63.
Consumer inflation slows in South Korea
In economic news, South Korea’s consumer inflation eased to its slowest pace in five months in May, reinforcing the case for continued policy support amid external economic pressures.
Data from Statistics Korea showed the consumer price index fell 0.1% from April and rose just 1.9% year-over-year, down from 2.1% in April and below the 2.1% forecast in a Reuters poll.
The figures marked the weakest annual inflation reading since December, suggesting that price pressures are softening more quickly than expected.
The slowdown came on the heels of the Bank of Korea’s decision last week to cut interest rates for the fourth time in its current easing cycle, as policymakers looked to cushion the economy from the impact of US trade tariffs and sluggish global demand.
Reporting by Josh White for Sharecast.com.