^{Source: CNN}

Markets in Asia Bounce Back as Wall Street Stumbles

Asian equities rebounded strongly on Thursday, shrugging off a bruising night on Wall Street where major U.S. indices tumbled following hawkish remarks by Federal Reserve Chair Jerome Powell. Despite mounting global trade tensions and tech-sector turbulence, investor sentiment across Asia-Pacific remained upbeat, with most regional markets ending the day in positive territory.

U.S. Volatility Casts a Shadow

The U.S. market's downturn was triggered by Powell’s remarks that trade-related uncertainty may hinder the Fed’s efforts to stabilize inflation and employment. Compounding the pressure was a sharp 6.9% decline in Nvidia’s stock, which rippled across the tech-heavy Nasdaq, sending it down 3.07% to 16,307.16—hovering dangerously close to bear market territory.

The Dow Jones Industrial Average also took a heavy hit, falling 699.57 points (1.73%) to close at 39,669.39. The S&P 500 dropped 2.24%, settling at 5,275.70, with the tech sector leading the sell-off.

Asia Turns Bullish Amid Global Concerns

Despite the overnight losses in the U.S., Asian investors were buoyed by regional resilience and policy optimism.

• Hong Kong’s Hang Seng Index soared 1.61%, closing at 21,395.14, supported by a rally in tech and property stocks.
• China’s CSI 300 remained flat, ending at 3,772.22, as investors awaited fresh stimulus cues from Beijing to bolster domestic demand.
• Japan’s Nikkei 225 jumped 1.35% to 34,377.60, while the broader Topix index climbed 1.29% to 2,530.23, led by gains in industrials and exporters benefiting from a weaker yen.
• South Korea’s Kospi Index advanced 0.94% to 2,470.41, while the Kosdaq surged 1.81% to 711.75, as the Bank of Korea kept interest rates steady at 2.75%, in line with economists’ expectations.
• India’s Nifty 50 rose 1.61%, and the BSE Sensex climbed 1.63% as of 2:15 PM IST, reversing early losses amid strong buying in financials and energy stocks.
• Australia’s S&P/ASX 200 gained 0.78% to finish at 7,819.10, supported by resource-heavy stocks amid rising commodity prices.

Strategists Shift Focus to Asia and Europe

Investors and fund managers are beginning to look beyond the U.S. for growth and yield. According to Thomas Poullaouec, Head of Multi-Asset Solutions for APAC at T. Rowe Price, there’s a growing preference for non-U.S. markets.

“We’re seeing stronger momentum in regions like Europe and Asia (excluding Japan), largely driven by increasing fiscal support and more dovish central banks,” Poullaouec noted in a market commentary.

He also emphasized attractive opportunities in global high-yield bonds and Asian credit, citing favorable all-in yields. "Fundamentals remain supportive," he said, "though spreads remain sensitive to trade volatility."

Poullaouec has also adopted a tactical overweight on cash to maintain liquidity and take advantage of sudden market corrections, noting its "attractive yields" in the current rate environment.

What’s Next for Global Markets?

Despite Thursday’s rally in Asia, uncertainty looms large. With geopolitical tensions, evolving trade dynamics, and upcoming inflation data in both the U.S. and Asia, investors are keeping a cautious but opportunistic stance.

U.S. futures edged higher in Thursday’s Asia trading hours, hinting at a potential rebound, though much will depend on fresh earnings reports and macroeconomic indicators.

Takeaway

While Wall Street reels from tech-sector jitters and central bank warnings, Asia’s markets are carving their own path—buoyed by regional optimism, central bank steadiness, and strategic investor rotation. Whether this resilience can be sustained depends on how global trade tensions evolve and whether stimulus measures across Asia prove effective in offsetting external shocks.

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