Asian stocks rose on Thursday as the weaker yen and stimulus measures from Beijing supported the region’s two largest stock markets. Equities in Japan and South Korea, as well as futures for Hong Kong, advanced, putting Asian equities back on track after a pause in the prior session. 

Hong Kong’s futures gained despite a decline in a benchmark of US-listed Chinese companies, possibly indicating fatigue from the recent stimulus-driven rally in Chinese equities.

US equity futures increased in early Asian trading following a mixed performance in the US markets. Treasury yields were steady after rising across the curve on Wednesday, supporting dollar gains. 

The yen was steady after falling more than 1% against the dollar in the previous session, while investors faced new bond supply from an auction of five-year notes. In the US, fresh data showed a decline in new home sales and a drop in mortgage rates, spurring demand for home purchases.

China’s central bank recently surprised the market with a broad package of monetary stimulus steps, with the possibility of more fiscal measures on the horizon. Elsewhere in Asia, upcoming data releases include industrial production in Singapore, machine tool orders in Japan, and Hong Kong trade data.

In commodities, oil edged slightly lower on Thursday after a previous trading session plunge, while gold traded steady near an all-time high as weak US data bolstered the case for deeper interest rate cuts.

Additionally, UBS Group AG’s Solita Marcelli commented on the Fed’s decision, emphasising that the Fed’s success in guiding the US to a soft landing will be important in determining the future outlook for other asset classes. 

Federal Reserve Governor Adriana Kugler and Michael Rosen, chief investment officer at Angeles Investments, shared their perspectives on the recent market developments.

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