Asia stocks edge higher after wall street rally; dollar weakens

Asian markets traded mostly higher on Thursday, following a rebound in U.S. and European equities as weaker U.S. labor data bolstered expectations of a Federal Reserve interest rate cut.

Benchmarks gained in Tokyo, Seoul, Sydney, and Taipei, while Shanghai slipped 0.9% and Hong Kong edged down 0.2%. In Shanghai, shares of Chinese semiconductor maker Cambricon tumbled more than 9%, weighing on the local market.

Wall Street rallied Wednesday as a global bond selloff eased. Alphabet surged about 9% after a U.S. judge declined to force the breakup of its Chrome browser business in a key antitrust case, while Apple rose nearly 4% on relief that its deal to keep Google as the default iPhone search engine remained intact.

Gold prices climbed to a fresh record on safe-haven demand tied to growing government debt concerns. Japanese government bonds also came under pressure, with 30-year yields reaching a record 3.29% and 20-year yields hitting their highest since 1999.

A U.S. report showing fewer job openings in July reinforced bets that the Fed may cut rates soon. “The dollar buckled under the weight of weaker jobs and increased Fed cut bets, handing Asia an early boost,” said Stephen Innes of SPI Asset Management.

Japanese political uncertainty added to investor caution after the ruling Liberal Democratic Party’s second-in-command resigned Tuesday following the party’s poor performance in July’s upper house election, raising questions about Prime Minister Shigeru Ishiba’s future.

Meanwhile, oil prices extended losses Thursday on expectations that OPEC+ members will unwind more supply cuts in the coming months.

Key figures at around 0215 GMT

Tokyo - Nikkei 225: UP 0.9 percent at 42,327.34
Hong Kong - Hang Seng Index: DOWN 0.2 percent at 25,299.52
Shanghai - Composite: DOWN 0.9 percent at 3,780.21
Euro/dollar: DOWN at $1.1654 from $1.1663 on Wednesday
Pound/dollar: DOWN at $1.3432 from $1.3445
Dollar/yen: DOWN at 148.11 yen from 148.12 yen
Euro/pound: UP at 86.77 pence from 86.75 pence
West Texas Intermediate: DOWN 0.6 percent at $63.60 per barrel
Brent North Sea Crude: DOWN 0.5 percent at $67.25 per barrel
New York - Dow: DOWN 0.1 percent at 45,271.23 (close)
London - FTSE 100: UP 0.7 percent at 9,177.99 (close)