Asian stock markets traded higher on Thursday, tracking an overnight rebound on Wall Street as a pullback in US Treasury yields supported risk appetite. South Korea's Kospi led gains in the region, surging 4.41%, while Japan's Nikkei 225 rose 1.21% and Australia's ASX 200 advanced 0.29%.
The gains followed a recovery in US equities, where the S&P 500 snapped a three-session losing streak. Longer-dated Treasury yields retreated from multi-year highs after the US government announced measures aimed at reducing pressure following the recent selloff in the bond market.
US equity futures were broadly steady after the Wall Street rebound. S&P 500 futures gained about 0.1%, Nasdaq-100 futures advanced 0.3% and Dow Jones Industrial Average futures rose 19 points, or 0.04%.
Bitcoin was another notable mover, extending its rally on Wednesday night. The cryptocurrency climbed about 7% to move above the $69,000 mark.
For Indian equities, however, elevated crude prices and geopolitical uncertainty remain key risks. Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services, expects the Nifty to remain under pressure amid weak global cues, higher oil prices and persistent geopolitical tensions.
The Nifty 50 declined 0.3% in the previous session, marking its seventh consecutive day of losses, according to Khemka. The Nifty Midcap 100 fell 0.2%, while the Nifty Smallcap 100 declined 0.5%.
Khemka also pointed to crude prices of around $91.2 a barrel and continued geopolitical uncertainty after a 60-day deadline expired without a resolution, with neither side moderating its stance.
Elevated longer-term bond yields in the US, Germany and Japan also remain a concern for emerging markets, Khemka said. Higher developed-market yields can make those bonds relatively more attractive to global investors, potentially weighing on flows into emerging-market equities.
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