Asia Markets Rally After U.S. Economic Boost

Asian shares saw a resurgence on Thursday, recovering from a prior selloff, driven by robust U.S. economic data. This renewed investor confidence boosted markets despite previous concerns over technology stock valuations. The U.S. economic strength also influenced Treasury yields and the Federal Reserve's rate cut expectations.

Asian stock markets rebounded on Thursday, shaking off a previous downward trend as encouraging economic data from the U.S. rekindled investor enthusiasm. The turnaround follows new U.S. data showing a rise in services sector activity and private payrolls, elevating market sentiment to near high levels.

The overnight resilience in U.S. Treasury yields curbed expectations for a Federal Reserve rate cut next month, sustaining the dollar's strength. This came after data revealed that U.S. services hit an eight-month high, with private employment figures surpassing forecasts. Analysts suggest a shift in labor market dynamics, with technology investments taking precedence over job hires.

The positive economic indicators helped ease concerns over overvalued tech stocks, leading to a Wall Street surge. Asian benchmarks followed suit, with Japan's Nikkei and South Korea's Kospi indices recovering from previous losses. Meanwhile, future investments in the U.S. bond market and ongoing tariff discussions continue to shape the financial landscape.

(With inputs from agencies.)