Asian Markets Show Mixed Signals

Asian stocks experienced a mixed trading day, influenced by Nvidia's plans to resume H20 AI accelerator sales to China and fluctuating Japanese bond yields. This development has sparked optimism regarding potential easing of trade tensions between the US and China.

Japan's 10-year government bond yield has climbed to levels not seen since 2008, driven by concerns over fiscal spending. Simultaneously, the market is closely watching the Bank of Japan's (BoJ) moves to normalise policy amidst rising inflation, which presents a challenge to the country's debt sustainability.

Across the region, market performance varied. Hong Kong's Hang Seng index saw gains, while mainland China's shares experienced fluctuations despite the country's second-quarter GDP exceeding expectations. Investors are also keeping an eye on US inflation data, which could provide insights into the impact of tariffs and future interest rate decisions.