Asia stocks gain as lower bond yields buoy tech; oil sags. Wednesday was a joyous day for Asia-Pacific stocks as expectations increased for a peak in interest rates among major central banks worldwide. Bond yields continued to fall, contributing to the rise in bond prices.

At the same time as rates on U.S. Treasury bonds were hovering close to a three-month low, yields on Japanese government bonds dropped to their lowest level since the middle of August.

The price of crude oil fell to a level that has not been seen in nearly five months, while the price of bullion remained unchanged after falling from an all-time high. After reaching a 20-month high this week, the price of bitcoin, which was trading just around $44,000, continued to rise.

U.S. 10-year Treasury yields remained stable at about 4.186% after reaching 4.163% on Tuesday. This was because the data from the labor market cooled, which further solidified the belief that the Federal Reserve was finished raising interest rates. The probability of a first cut occurring by March is currently around 64%, according to the FedWatch tool from the CME Group.

JGB yields, used as a benchmark, fell in sympathy, reaching their lowest level since August 16 at 0.62%. Lower borrowing costs helped the equity markets, with large technology companies being a significant winner.

Japan’s Nikkei (.N225) rose 1.6%, recovering from its low point on Tuesday, which occurred in the middle of November. Meanwhile, Australia’s stock benchmark (AXJO) increased by 1.4%, while South Korea’s KOSPI (KS11) climbed by 0.56%.

U.S. stock futures also showed a positive direction, with the tech-heavy Nasdaq indicating a 0.4% increase after the cash index (.IXIC) advanced by 0.31% overnight. Futures on the S&P 500 index increased by 0.26% after the cash index finished the day unchanged.

Overnight, the United States’ employment results came in lower than anticipated; yet, when combined with the impressive data on services, they added to the narrative that the economy will have a soft landing as the Federal Reserve moves toward monetary easing, according to economists.

Tony Sycamore, an analyst at IG, stated that the “selloff in yields across the curve is strong evidence of the intense focus the market has on this week’s labor market data.” The ADP employment report will be released on Wednesday, and non-farm payrolls will be released on Friday.

When it comes to the Nasdaq, Sycamore stated, “Although we remain bullish into year-end, we are not contemplating opening fresh longs at these levels.” Instead, he suggested purchasing dips.

Even though confidence rating agency Moody issued a downgrade warning on China’s credit rating, Chinese markets underperformed on Wednesday.

The Hang Seng index in Hong Kong increased by 0.41%, primarily due to a rally in the technology sector, with a sector subindex (.HSTECH) jumping by around 1%.

Blue chips issued by the CSI300 were flat on the mainland of China. Even though markets are almost convinced that the next move that the Federal Reserve will make is a reduction, dovish language from members of the European Central Bank overnight and the decision of the Reserve Bank of Australia to maintain policy stability on Tuesday have fuelled expectations for a peak in interest rates throughout the world. Additionally, it is widely anticipated that the Bank of Canada will also take a wait-and-see stance on Wednesday.

With the U.S. dollar index remaining stable at approximately 103.95 on Wednesday, compared to a bottom of 102.46 a week ago, this has supported the return of the U.S. currency from its almost four-month low the previous week compared to key rivals.

James Kniveton, a senior corporate FX trader at Convera in Melbourne, stated that the United States dollar (USD) saw a decline when it appeared the Federal Reserve was reducing its monetary policy while other central banks were maintaining their present stance.

“Now that looks to be changing, and other central banks are following the Fed’s lead.”

The dollar increased by 0.08% to 147.265 yen, while the euro remained relatively unchanged at $1.07935.

After reaching a new high of $2,135.40 on Monday, gold was trading slightly around $2,020, taking a breather after its recent rally.

Bitcoin remained stable at about $43,850 after reaching a high of $44,490 overnight. This was fueled by the Federal Reserve’s anticipation of a rate decrease, and the United States authorities would soon approve the prediction that exchange-traded spot bitcoin funds.

The deteriorating demand picture from China and uncertainties regarding the effects of OPEC’s cutbacks contributed to a further decline in crude oil prices on Wednesday.

The futures contract for Brent crude fell by 8 cents, or 0.1%, to $77.12 per barrel, while the futures contract for WTI crude in the United States fell by 13 cents, or 0.2%, to $72.19 per barrel. During the previous session, both benchmarks finished at their lowest levels since July 6.