Asian stock markets attempted to recover on Thursday following a significant decline, as investors weighed the potential for aggressive interest rate cuts by the Federal Reserve amid growing concerns about the US economy. The rally in US Treasury bonds weakened the dollar and boosted the Japanese yen, while oil prices remained relatively stable after recent declines. Japan's Nikkei index fell by 0.5 per cent, marking its lowest level in three weeks. However, Taiwan and South Korean stocks gained one per cent each after experiencing losses on Wednesday. MSCI's broadest index of Asia-Pacific shares outside Japan rose by 0.6 per cent, partially recovering from a three-day losing streak that saw it drop nearly three per cent. Investor attention on Thursday will be focused on US services industry data and jobless claims. However, the most anticipated economic event of the week remains Friday's nonfarm payrolls report for August. In the currency market, the dollar remained under pressure as investors sought safe-haven assets. The Japanese yen and Swiss franc, both traditional safe-haven currencies, strengthened against the dollar. Two-year note yields were at 3.775 per cent, the lowest since May 2023, while 10-year note yields were at 3.767 per cent. Brent crude futures increased by 0.45 per cent to $73.03, rebounding from a 1.42 per cent drop, and US West Texas Intermediate crude futures rose by 0.52 per cent to $69.56 after a 1.62 per cent decline on Wednesday. Attribution: Reuters Subediting: M. S. Salama
