Asian stocks today: Markets climb amid US rate cut hopes, Japan bond jitters; Kospi nears 2%, Nikkei up over 56 points

Nikkei also rose 56 points to trade at 49,360 at 10:30 AM IST.

South Korea’s Kospi added 1.81% to 3,991.Meanwhile in China, Shanghai and Shenzhen were down 0.55% and 0.77%, respectively.

The latest lift in stocks followed a muted trading session on Monday, but sentiments turned after another batch of weak US economic numbers strengthened confidence that the Federal Reserve is moving closer to cutting interest rates.

Hopes of rate relief have repeatedly buoyed equities over recent weeks, helping markets erase the slump triggered earlier in November by jitters over a possible tech bubble. Expectations of a third straight cut gained further traction after multiple Fed officials indicated that preserving employment now takes priority over pushing down elevated prices.

Recent figures have offered support for that shift in stance, with the broader economy, particularly the labour market, showing signs of softening while inflation appears largely stable for the moment.

A fresh survey from the Institute for Supply Management revealed that US factory activity contracted for a ninth month in a row, reinforcing that narrative. With the macro signals favouring risk assets again, Asia entered Tuesday on firmer footing.

Hong Kong, Sydney, Seoul, Singapore, Taipei, Wellington, Manila and Jakarta all traded higher.

Shanghai bucked the trend with a dip.

Tokyo also managed to climb after suffering heavy losses the previous day, when Bank of Japan Governor Kazuo Ueda unsettled global markets by hinting at the possibility of an interest rate increase this month. Ueda’s remarks sent the yen sharply higher and pushed yields on Japanese two-year government bonds beyond the one percent mark, a level not seen since the 2008 global financial crisis.

Although the Japanese currency steadied on Tuesday, the effects of the shock lingered.

The comments contributed to a pullback on Wall Street following last week’s Thanksgiving rally and reduced appetite for risk, dragging the cryptocurrency market lower as well. Markets are now keeping a close watch on a scheduled auction of 10-year Japanese government bonds later on Tuesday, seen as a key test of sentiment following the recent spike in yields. Meanwhile in corporate news, one of the biggest moves in the region came from Seoul.

Shares of Samsung Electronics jumped more than two percent after the tech heavyweight unveiled its first triple-folding smartphone.

The company acknowledged that its price, more than $2,400, is likely to put the device beyond the reach of most consumers, but investors appeared enthusiastic nonetheless.