Asia-Pacific stocks rose Thursday on expectations that the European Central Bank will cut rates, with softer U.S. labor market data fueling hopes that the Fed might follow suit, further boosting market sentiment.
The ECB this week appears set to cut borrowing costs for the euro area for the first time since September 2019.
In Japan, the Nikkei 225 index regained 213.34 points, or 0.6%, to 38,703.51.
Bank of Japan Governor Kazuo Ueda reportedly said it would be “appropriate” to reduce the purchases of bonds by the central bank as it unwinds its ultra-loose monetary policy.
According to Reuters, Ueda also said the BOJ will move “cautiously” in determining when and by how much it raises short-term interest rates “to avoid making any big mistakes.”
As of June 4, the BOJ revealed that it holds 596.71 trillion yen ($3.83 trillion U.S.) of Japanese government securities, as well as 5.9 trillion yen worth of corporate bonds and 2.1 trillion yen in commercial paper.
In Hong Kong, the Hang Seng index gained 51.84 points, or 0.3%, to 18,476.80.
Australia, whose exports fell to their lowest level since December 2021, saw markets climb.
In other markets
Markets in Korea were closed for holiday.
In Shanghai, the CSI 300 dipped 2.54 points, or 0.1%, to 3,592.25.
In Singapore, the Straits Times Index inched 0.8 points to 3,330.81.
In Taiwan, the Taiex index popped 417.82 points, or 1.9%, to 21,902.70.
In New Zealand, the NZX 50 settled 23.7 points, or 0.2%, to 11,973.01.
In Australia, the ASX 200 advanced 52.77 points, or 0.7%, to 7,821.77.
