SINGAPORE – Asian stocks rose on Thursday with fears easing on the banking front.
MSCI's broadest index of Asia-Pacific shares outside Japan gained for a third day in a row, rising 0.3 percent. It is eyeing two consecutive quarters in the green for the first time since the middle of 2021.
Japan's Nikkei eased 0.6 percent after jumping 1.3 percent on Tuesday. It is up 6.1 percent for the quarter, its best since March 2021. Australian stocks rose 1 percent.
Overnight Wall Street indexes jumped after the US banks' top cop appeared before Congress and focused remarks on failures at Silicon Valley Bank and its supervision, rather than broader systemic issues across the financial sector.
The US dollar was firm, particularly against the safe-haven Japanese yen as investors wound back some of the safety positions built up in the last couple of weeks. The yen last traded at 132.75 to the dollar.
As the dust settles on a wild and volatile ride after Silicon Valley Bank's collapse unleashed fears of a broader banking crisis, the winners appear to be bonds and large tech companies that tend to benefit when interest rates fall.
From the two-year tenor all the way to 30-year, US yields are below the current Fed funds rate of roughly 4.8 percent as markets have dramatically repriced the rates outlook.
Two-year yields are down 30 basis points for the quarter, the first quarterly fall since March 2020.
The rates-sensitive Nasdaq is heading for its best quarter in more than two years. Nasdaq and S&P 500 futures were steady on Thursday.
In commodity trade, Brent oil futures steadied at $78.18 a barrel and gold, which has surged over the past few weeks, was under gentle pressure at $1,958 an ounce.
The euro dipped marginally to $1.0832.