(Bloomberg) — Asian stocks rose and currencies edged higher as traders digested a rate pause by the Federal Reserve and shifted focus to a pair of central bank speeches taking place in the region.
Shares in Japan moved up after an earlier decline, helping the MSCI Asia Pacific Index gain around 0.2%. Liquidity remains thin, with many of the region’s major equity markets — including those in Hong Kong, mainland China and South Korea — closed for the Lunar New Year holiday.
Investors in the region had plenty to digest from US trading hours — but none of it pointed to a clear direction for stocks. The Fed’s decision to hold rates was widely expected, and earnings from International Business Machines Corp., Meta Platforms Inc., Microsoft Corp. and Tesla Inc. sent mixed signals to investors.
That left traders looking for local events, with an afternoon speech by Bank of Japan Deputy Governor Ryozo Himino coming into focus. The Bank of Japan hiked rates last week, and traders think the Fed’s signal that it is in no rush to cut could give him room to strike a more hawkish tone.
“Given that markets are not pricing in a very near term hike, the yen will likely richen quickly if Himino sounds surprisingly hawkish on Japan’s economy and inflation,” said Shoki Omori, chief global desk strategist at Mizuho Securities Co. in Tokyo.
The yen gained as much as 0.5% against the dollar as fast money traders lined up bets on the currency, according to an Asia-based FX trader. That was part of a wider appreciation among Asian currencies, with a Bloomberg gauge rising as much as 0.2%.
Reserve Bank of Australia Assistant Governor for the Financial System Brad Jones will also speak Thursday after soft fourth quarter inflation data was released this week. While traders increased the odds the central bank will begin its rate cut cycle next month, markets are yet to fully price a 25 basis point reduction, according to swaps data compiled by Bloomberg.
SoftBank Shares Down
SoftBank Group Corp.’s shares fell as much as 2% before paring around half of their losses, after a Financial Times report that the company is considering a $25 billion investment in OpenAI. The two companies are leading the Project Stargate joint venture, with plans to deploy $100 billion for the construction of data centers and other AI infrastructure
“The Softbank news provided some relief and the market is reacting positively as there is finally specific amount of money announced that makes the project more feasible,” said Takehiko Masuzawa, head of equity trading at Phillip Securities Japan.
US futures were higher, pointing to a reversal of the small declines in the major indexes on Wednesday. Investors will also be on the lookout for earnings from Apple Inc. during US trading hours.
The Philippine economy grew slower than expected in the fourth quarter, dragging growth in 2024 below the government’s target in a year disrupted by storms and flooding. That weighed on the local stock benchmark, which is close to entering bear market territory.
In commodities, oil steadied as investors waited for clarity on the US administration’s plans for trade policy, after Donald Trump’s pick for commerce secretary said Canada and Mexico may be able to avoid levies.
Key events this week:
- Eurozone ECB rate decision, consumer confidence, unemployment, GDP, Thursday
- US GDP, jobless claims, Thursday
- Apple, Deutsche Bank earnings, Thursday
- US personal income & spending, PCE inflation, employment cost index, Friday
Some of the main moves in markets:
Stocks
- S&P 500 futures rose 0.4% as of 12:22 p.m. Tokyo time
- Nikkei 225 futures (OSE) fell 0.3%
- Japan’s Topix rose 0.2%
- Australia’s S&P/ASX 200 rose 0.8%
- Euro Stoxx 50 futures rose 0.3%
Currencies
- The Bloomberg Dollar Spot Index fell 0.2%
- The euro was little changed at $1.0425
- The Japanese yen rose 0.5% to 154.39 per dollar
- The offshore yuan was little changed at 7.2634 per dollar
- The Australian dollar was little changed at $0.6237
- The British pound was little changed at $1.2453
Cryptocurrencies
- Bitcoin rose 0.8% to $104,606
- Ether rose 0.8% to $3,166.1
Bonds
- The yield on 10-year Treasuries was little changed at 4.53%
- Japan’s 10-year yield advanced two basis points to 1.210%
- Australia’s 10-year yield advanced two basis points to 4.39%
Commodities
- West Texas Intermediate crude was little changed
- Spot gold was little changed
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Matthew Burgess, Winnie Hsu and Richard Henderson.
©2025 Bloomberg L.P.
