Asian stock markets experienced gains in early trading on Friday, influenced by a decrease in U.S. Treasury yields. This follows a volatile week in bond markets, which had been driven by concerns over increasing U.S. government debt.
The yield on the 10-year Treasury fell to 4.54%, while the 2-year Treasury yield decreased to 4.00%. In Japan, the Nikkei 225 increased by 0.8%, after core inflation reached 3.5% in April. This rise in inflation has boosted the yen and Japanese bond yields, potentially giving the Bank of Japan more flexibility to raise interest rates.
Hong Kong's Hang Seng rose by 0.5%, and the Shanghai Composite Index increased by 0.5%. Seoul's Kospi climbed 0.2%, while Australia's S&P/ASX 200 gained 0.3%. These movements reflect a broader trend of cautious optimism in Asian markets, influenced by both U.S. economic factors and domestic economic data.