Asian stock market gains on Wednesday

Asian stocks rose on Wednesday, with MSCI’s broadest index of Asia-Pacific shares outside Japan gaining 0.24 per cent, as reported by Reuters. The Nikkei, however, fell one per cent as the Japanese yen strengthened.

Investor sentiment was buoyed by a softening US labour market, which firmed up bets of an interest rate cut from the Federal Reserve in September.

Data released on Tuesday showed US job openings fell more than expected in April, hitting a three-year low.

Investors are now more confident, with markets expecting a rate cut of 45 basis points this year and a 65 per cent chance of a cut in September, up from 46 per cent last week.

The dollar remained steady after hitting a near two-month low on Tuesday. Benchmark 10-year note yields also held steady after falling to a three-week low on Tuesday.

Chinese markets were mixed, as the blue-chip CSI300 index saw little change, while Hong Kong’s Hang Seng index rose one per cent.

A private sector survey showed China’s services activity in May accelerated at its fastest pace in 10 months, pointing to sustained recovery in the second quarter.

Meanwhile, the Nifty 50 index is expected to open subdued after foreign investors sold roughly $1.5 billion worth of shares.

Prime Minister Narendra Modi’s Bharatiya Janata Party secured a victory in the recent elections, but with a slimmer-than-expected margin.

This has raised some uncertainty over economic policies, impacting market sentiment in the short term. Analysts, however, remain optimistic about India’s long-term growth trajectory.

Oil prices extended losses slightly in early Asian trading on concerns about demand after an industry report showed builds in US crude and fuel stockpiles.

Brent crude futures fell 0.1 per cent to $77.47 a barrel, while US West Texas Intermediate crude futures fell 0.12 per cent to $73.16 a barrel.

Gold prices rose slightly, up 0.09 per cent to $2,330 per ounce.