Asian stock markets posted gains on Thursday, partially recovering from the sharp selloff in the previous session. The rebound was fueled by stronger-than-expected U.S. economic data, helping soothe investor anxiety over stretched equity valuations.

U.S. Data Boosts Market Confidence

Wall Street surged overnight after reports showed the U.S. services sector hit an eight-month high in October. Private payrolls also exceeded forecasts, rising by 42,000 jobs and signaling resilience in the American job market. The upbeat results helped curb some pessimism around tech valuations and revived risk appetite globally.

“We’re not too concerned about the job market,” said Keiko Kondo, head of multi-asset investments at Schroders. “Businesses are investing in tech. While hiring may not be accelerating, neither is firing.”

Asian Markets Track Wall Street Gains

• Japan’s Nikkei (.N225) climbed 1.4%, bouncing from a 2.5% drop on Wednesday.
• South Korea’s Kospi (.KS11) initially soared over 2% before settling 0.8% higher.
• The MSCI Asia-Pacific Index (.MIAPJ0000PUS) rose 0.76%, tracking the broader recovery.

Chinese equities also saw a lift, with Shanghai’s main index reclaiming the key 4,000 level. Optimism around semiconductor and AI-focused shares—seen as critical to China’s self-sufficiency goals—drove the rally.

Fed Rate Cut Bets Scale Back

U.S. Treasury yields held firm as traders reduced expectations of a Federal Reserve rate cut in December. The 10-year yield rose to 4.1473%, while the U.S. dollar hovered near a five-month high.

“The odds of a December Fed funds rate cut are shrinking,” said Interactive Brokers senior economist Jose Torres. “Limited economic releases due to the government shutdown are only adding to the dollar’s strength.”

Market Snapshot

• Dollar vs Yen: Down slightly at 153.84
• Euro: Up at $1.1507
• Brent Crude Oil: Up 0.36% to $63.75 per barrel
• Gold: Rises 0.13% to $3,987.56 per ounce

What’s Next?

Investors are eyeing the Bank of England’s rate decision later today, along with continued analysis of U.S. economic resilience. The global equity landscape remains sensitive to central bank policies, inflation trends, and geopolitical developments—including the outcome of a U.S. Supreme Court case on tariffs that could impact global trade.