Asian shares gain, with South Korea’s Kospi up 6%, after the US Treasury expands its debt buybacks
Summary
Asian stock markets rose on Thursday, led by South Korea’s Kospi, which increased by over 6%. This followed the U.S. Treasury Department’s announcement to enlarge its purchases of longer-term government debt, a move that helped lower bond yields and eased pressure on stock prices.Key Facts
- South Korea’s Kospi index jumped 6.1% to 6,858.91 after a previous drop.
- Samsung Electronics shares rose nearly 10%, and SK Hynix shares increased 14.1% after announcing a big share buyback.
- Japan’s Nikkei 225 climbed 1.3%, reversing earlier losses, despite Japan’s third consecutive monthly trade deficit.
- Hong Kong’s Hang Seng and China’s Shanghai Composite indexes also rose, along with Australia’s S&P/ASX 200.
- U.S. Treasury Department said it would double the planned purchases of longer-term government bonds.
- Bond yields fell in the U.S. and Asia after the announcement, helping to calm investor concerns.
- The S&P 500, Dow Jones, and Nasdaq indexes in the U.S. all rose by 0.2% following the Treasury’s move.
- Rising bond yields had been caused by inflation worries linked to the war in Iran and growing government debt.
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