Asia report: Stocks rise as US bond yields climb higher

(Sharecast News) - Asia-Pacific stock markets finished mostly positive on Monday, as US 10-year Treasury bonds touched their highest yields in over a decade. The 10-year Treasury note yield reached an apex of 4.34% - its loftiest point since November 2007.

"US stock markets continue to outperform, with technology stocks leading the way thanks to advancements in AI," said Stephen Innes at SPI Asset Management.

"The strong performance of US equities contributes to the idea of 'US exceptionalism', supported by promising growth numbers and a central bank committed to maintaining a strong stance as it winds down its tightening cycle."

Innes noted that in a positive turn of events, Chinese shares saw a last-minute surge, lifting the overall mood in Asia.

"The rebound of key mainland equity indexes from previously oversold levels is particularly noteworthy.

"The technology sector has been the driving force behind these gains as the world embraces the AI bandwagon."

Equities show resilience amid rising bond yields

Japan's stock market showcased encouraging gains, with the Nikkei 225 advancing 0.92% to settle at 31,856.71 and the Topix rising 1.08% to 2,265.71.

Among the Tokyo benchmark's notable performers were Advantest Corporation, climbing 4.6%; Resona Holdings, gaining 3.5%; and Toyota Tsusho Corporation, appreciating 3.38%.

China's markets followed suit with the Shanghai Composite edging up by 0.88% to 3,120.33, and the Shenzhen Component nudging 0.53% higher to 10,374.73.

Stocks in focus in Shanghai included CCS Supply Chain Management, which surged a remarkable 10.03%, and China Bester Group Telecom with a 10% increase.

In Hong Kong, the Hang Seng Index also reflected optimism, growing 0.95% to 17,791.01.

Among the front runners were Zhongsheng Group Holdings, rising 5.87%, Hansoh Pharmaceutical Group up 4.5%, and Zijin Mining Group climbing 4.08%.

South Korea's Kospi index witnessed a moderate rise of 0.28% to 2,515.74, with notable gainers in Seoul including Coway, with a 3.52% increment, and Naver Corporation, up by 3.03%.

Australia experienced subtle growth, with the S&P/ASX 200 inching up 0.09% to 7,121.60.

Tech firms dominated the leaderboard in Sydney, with Altium skyrocketing 25.92% and Megaport registering a gain of 16.94%.

New Zealand's S&P/NZX 50 marginally rose by 0.23%, ending the day at 11,485.26, with Wellington's key performers including Oceania Healthcare, which saw an increase of 4%, and A2 Milk Company, which rose by 3.21%.

On the currency front, the dollar was last down 0.36% against the yen at JPY 145.69.

The greenback also dropped 0.43% on the Aussie to trade at AUD 1.5523, and by 0.45% to change hands against the Kiwi at NZD 1.6794.

Oil prices meanwhile saw a slight drop, with Brent crude futures easing 0.06% on ICE to $84.41 per barrel, and the NYMEX quote for West Texas Intermediate falling 0.17% to $80.58 per barrel.

Hong Kong inflation rate declines; South Korea's consumer sentiment dips

In economic news, Hong Kong reported a deceleration in its inflation rate for July to 1.8% - a drop from the previous month's 1.9%.

The figure was also beneath the expected 2% that had been pencilled by analysts polled by Reuters.

According to the data, the most significant surge in prices was seen in alcoholic drinks and tobacco, which soared 18.4% compared to last year.

Following close behind, electricity, gas, and water saw a 9.9% year-on-year increase, while the clothing and footwear sector experienced a 6.6% rise.

Contrarily, prices in durable goods underwent a decline of 3.3%, and basic food items dipped by 0.5% on a year-to-year basis in July.

Elsewhere, South Korea saw a slump in consumer confidence for August, breaking the continuous positive trend of the last six months.

Data from the Bank of Korea's survey revealed that the consumer sentiment index slightly decreased to 103.1 from the prior month's 103.2.

A score above 100 signifies that positive respondents surpassed the negative ones in the survey.

The assessment for both the present and anticipated domestic economic situations showed signs of pessimism in July, although there was a silver lining as respondents expressed enhanced optimism regarding their future living conditions and prospective household incomes, providing a modest counterbalance to the overall downturn.

Reporting by Josh White for Sharecast.com.