Japan’s 10-year government bond yield rose above 1.27% on Wednesday as news of upcoming US-China trade talks in Switzerland eased investor anxiety and reduced demand for safe-haven assets.
Sentiment across Asia was further buoyed by the People’s Bank of China’s announcement of rate cuts aimed at bolstering economic growth.
Meanwhile, investors continued to monitor the progress of US-Japan trade talks, with Tokyo aiming to finalize a bilateral agreement by June.
On the data front, Japan’s April services PMI was revised higher, reflecting the strongest rise in new orders in nearly a year.
Last week, the Bank of Japan left its benchmark interest rate unchanged at 0.5% and cut its growth and inflation forecasts, signaling that any future rate hikes remain unlikely for now.