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Asia stocks jump as US Treasury buybacks ease 30-year yields

South Korea's KOSPI surged nearly 6% intraday, helping stocks rise even as US Treasury hawks and Iran risks kept the focus on rates.

Reported · Written up by our desk · Central Banks

Asian equities rose on Thursday, led by South Korea's KOSPI, which surged nearly 6% intraday, after SK Hynix shares climbed more than 5% following a buyback announcement. Japan's Nikkei 225 and the Hang Seng Index also gained around 1%, while China's Shanghai Composite rose about 0.25%.

The move tracked improvements in US rates sentiment after the US Department of the Treasury said it would at least double buyback operations for long-dated government debt to keep borrowing costs in check. The 30-year yield fell from its highest level since June 2007, and bond market moves in Australia and Japan mirrored the shift.

In policy updates, the People's Bank of China kept lending rates unchanged for the 15th straight month in August, providing additional support to regional sentiment. Meanwhile, hawkish FOMC Minutes released Wednesday suggested at least one interest rate hike in 2026 and raised the risk that further tightening could be needed if inflation progress stalls.

Oil prices were mixed as traders waited for developments around the Middle East crisis, where the US said it would launch severe economic measures against Iran and threatened financial penalties for countries that help Tehran evade sanctions or do business with Iran. Despite those risks, the easing in long-dated US yields helped investors add to riskier assets in Asia.

Latest closeNikkei 225 68,308.59 ▲1.2%|Hang Seng 25,396.51 ▼0.2%|Kospi 6,813.34 ▲3.6%

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