Asian stocks rise amid holiday trading

Asian stocks rose slightly on Tuesday in a shortened holiday week, while the dollar remained near a two-year high due to higher US Treasury yields, signalling expectations of fewer Federal Reserve rate cuts in 2025.

Chinese stocks saw slight increases following announcements of further fiscal support from Beijing aimed at bolstering the nation’s economic recovery.

Both the CSI300 blue-chip index and the Shanghai Composite Index each finished trading 0.9 pr cent higher. Hong Kong’s Hang Seng Index also advanced, rising 1.08 per cent.

Reuters reported, citing two sources, that Chinese authorities have approved the issuance of 3 trillion yuan ($411 billion) in special treasury bonds for the coming year. This would represent a record high. In response to this news, Chinese government bond yields edged upward, with the 10-year yield increasing by two basis points to 1.7125 per cent.

In contrast to the gains in Chinese markets, Japan’s Nikkei fell by 0.24 per cent. Meanwhile, the proposed $15 billion acquisition of US Steel by Nippon Steel has been referred to US president Joe Biden, according to a White House spokesman.

Attribution: Reuters

Subediting: M. S. Salama