Global Markets Stumble Amid U.S. Credit Concerns and Trade Stalemate

Asian stocks ticked up as U.S. Treasury yields steadied, offering the U.S. dollar some respite. Moody's recent downgrade due to the mounting U.S. debt spurred volatility, but markets have since calmed. With trade deals lacking momentum, global markets seek direction amid complex economic signals.

In a volatile week for global markets, Asian stocks rose modestly as U.S. Treasury yields steadied, offering the U.S. dollar temporary breathing space. The market is digesting weak signals on trade deals and Moody's downgrade over the U.S.'s $36 trillion debt, which had earlier sparked a selloff.

A recovery in major U.S. stock indexes saw them flattening by close, with the MSCI Asia-Pacific index gaining 0.36% and Japan's Nikkei advancing 0.65%. Meanwhile, China's central bank offered reassurance by cutting benchmark lending rates, prompting a minor lift in the Hang Seng Index by 1%.

Market analysts highlight that despite current stability, risks loom as U.S. economic policy debates continue. With investors eyeing Congressional tax bill discussions and potential interest rate cuts from the Federal Reserve, markets remain attentive to U.S. fiscal health and trade dynamics.

(With inputs from agencies.)