Asia-Pacific markets rise in thin holiday trade after BOJ stands pat, U.S futures rise amid robust earnings from two major tech giants

While most Asian stock markets were closed on Thursday, Japanese shares bucked the trend, rising after the Bank of Japan maintained its interest rates as widely predicted. Trading volumes were very thin as major markets, including China, Hong Kong, South Korea, Singapore, and others, were all closed for the Labor Day holiday. Japan, China, South Korea, and ASEAN countries are set to expand their emergency currency swap program, the Chiang Mai Initiative, to cover crises beyond financial shocks—such as infectious disease outbreaks and natural disasters— according to Nikkei Asia. Gold fell below $3,230 per ounce on Thursday, marking its third consecutive session of losses as easing trade tensions between the U.S. and its trading partners dented the metal’s safe-haven appeal. Japan ( NKY:IND ) rose 1.15% on Thursday to surpass 36,200, reaching a one-month-high. The Japanese yen depreciated past 143.5 per dollar on Thursday, sliding for the third straight session after the Bank of Japan kept its policy rate unchanged at 0.5%, in line with expectations. The Bank of Japan kept its key short-term interest rate unchanged at 0.5% during its May meeting, maintaining the highest level since 2008 and in line with market expectations. The central bank also slashed its growth and inflation forecasts, reducing the likelihood of future rate hikes. The BOJ now sees full-year GDP growth of 0.5% for 2025, down from January’s forecast of 1%. The au Jibun Bank Japan Manufacturing PMI rose to 48.7 in April 2025, up from a flash estimate of 48.5 and March’s 12-month low of 48.4, marking a 10th straight month of contraction, due to weaker demand and worsening concerns about U.S. tariffs. Japan’s consumer confidence index fell to 31.2 in April 2025 from 34.1 in March, marking the fifth consecutive monthly decline and the lowest level since February 2023. China ( SHCOMP ) market closed, the offshore yuan traded around 7.27 per dollar, holding steady for a second straight session in thin trading due to the Labor Day holidays, while investors remained cautious as recent PMI data signaled early signs of strain from Trump’s tariffs. Hong Kong ( HSI ) market closed India ( SENSEX ) market closed Australia ( AS51 ) rose 0.24% to below 8,120 on Thursday, ending a five-day winning streak, as mining and energy stocks declined amid softer commodity prices. The Australian dollar climbed above $0.64 on Thursday, building on gains from the previous session following the release of strong trade balance data. Australia reported a trade surplus of A$6.9 billion in March, significantly higher than February’s downwardly revised A$2.85 billion and beating market expectations of A$3.13 billion. Supporting the currency further, April data showed that manufacturing activity continued to expand, with new orders rising at their fastest pace in nearly two and a half years—a positive sign for domestic demand. Taiwan on Wednesday unexpectedly raised its 2025 economic growth forecast to 3.6%, up from 3.14%, following a strong first-quarter performance driven by a surge in exports, particularly in tech, ahead of potential U.S. import tariffs. In the U.S., on Wednesday, all three major indexes ended mixed. The S&P 500 and Dow reversed early losses, rising 0.1% and 0.3%, respectively to extend their winning streak to seven days, while the Nasdaq closed 0.1% lower. Investors shrugged off recession concerns despite data revealing the first quarterly economic contraction in three years. U.S. stock futures rose sharply on Thursday, fueled by robust earnings from two major tech giants: Dow +0.55% ; S&P 500 +0.96% ; Nasdaq +1.43% . Looking ahead, investors await additional key earnings and economic reports on Thursday, with particular focus on results from Apple and Amazon. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: BOJ keeps rates unchanged, revises down its growth outlook Japan’s manufacturing PMI revised upward to 48.7 in April China’s manufacturing contracts in April despite stimulus measures Australia inflation steady at 2.4% in Q1, service inflation dips China says no need for U.S. farm and energy goods, but is stocking oil – report

Source: Seeking Alpha