Stock markets in major Asian countries closed higher on the 23rd as they failed to significantly dampen investor sentiment despite unstable factors such as pressure on soaring U.S. Treasury yields and concerns over an economic downturn.
China’s Shanghai Composite Index closed at 2962.63, up 0.78% from the previous session, and the CSI 300 index, which is mainly large-cap stocks, rose 0.37% to 3487.13. The Chinese stock market, which showed a downward trend in early trading, rebounded, relieved by the news that China’s sovereign wealth fund funds are buying the CSI 300 index ETF.
Japan’s Nikkei 225 Index (0.20%) and KOSPI Index (1.12%) also rebounded in the V-shape to close higher. The KOSPI index fell in the 1% range due to a flurry of counter-trading in early trading, and then turned strong as low-priced buying flowed in.
Stock markets in major Asian countries showed strong fluctuations during the day as various materials were reflected, such as pressure on soaring U.S. government bond interest rates and growing vigilance ahead of the release of U.S. economic indicators.
The 10-year U.S. Treasury bond rate, which broke 5% again during the day, fell as voices grew concerned about the economic downturn. Some predict that interest rates on government bonds will continue to rise. Tracy Chen, portfolio manager at Brandi Wine Global, said, “Interest rates will remain higher for longer because of the high fiscal spending trend,” predicting that it is not impossible to surpass 6% interest rates.
Bill Gross, dubbed Wall Street’s guru, warned that the government should prepare for a possible economic shock. Gross, founder of global bond management firm Pimco, predicted on social media X that the U.S. economy will enter a recession in the fourth quarter, saying, “The carnage of local banks and the rise in overdue auto loans to the highest level ever suggests that the U.S. economy is slowing significantly.”
There are even concerns in the market that increased geopolitical uncertainty caused by the Israeli-Palestinian conflict could slow economic activity and boost global inflation.