Stocks in Asia were mixed overnight, as trading volumes remain subdued due to market holidays in China, Hong Kong, and South Korea.
The Nikkei (^N225) ended flat on the day in Japan, following a 4.75% surge on Monday, which marked its best performance since April, when it responded to the 90-day reciprocal tariff extension.
Early morning data revealed that Japanese household spending increased at a faster rate than anticipated in August, suggesting that consumers are feeling relatively optimistic, which is a positive indicator for the recovery of private consumption.
Consumer spending rose 2.3% year-on-year in August, marking the fourth consecutive month of growth and significantly surpassing the median market forecast of a 1.2% increase.
Meanwhile, the Japan 30-year auction saw stronger demand than its 12-month average, alleviating investor concerns following Sanae Takaichi’s election victory over the weekend. Yields on the 30-year JGBs have decreased 2.6bps, trading at 3.28%, while the 10-year JGBs are down by -0.5bps, currently standing at 1.68% as we go to press.
Across the pond on Wall Street, US markets were unfazed by matters in Europe or the ongoing shutdown. The S&P 500 (^GSPC) rose 0.4%, and the tech-heavy Nasdaq (^IXIC) was 0.7% higher — both moving to new record highs. The Dow Jones (^DJI) lost 0.1%.
