Tech stocks brushed aside the uptrend in yields, leading the US equity markets into positive territory. On Tuesday, the Nasdaq Composite Index rallied 1.54%. The S&P 500 and the Dow gained 1.12% and 0.61%, respectively.

The US equity markets set the tone for the Wednesday session, with the ASX 200 and Nikkei opening in positive territory.

However, updates on wage negotiations from Japan pressured the Nikkei. Toyota Motor Corp. (7203), a leading indicator of wage negotiations, reportedly agreed to union demands for wage increases. On Wednesday, Toyota Motor Corp. gave factory workers the most marked increase in pay in 25 years.

News of rising mortgage defaults in China impacted Hang Seng-listed real estate stocks. Tech stocks gave up early gains. In contrast, the ASX 200 tracked the overnight gains from the US. Bank and retail stocks were among the front-runners.

US Equity Market Moves and the Bank of Japan in Focus

On Thursday, the US equity market session from Wednesday will set the tone for the session. There were no US economic indicators for investors to consider on Thursday.

10-year US Treasury yields gained 0.94%, ending the session at 4.192%. Caution ahead of US retail sales and producer price numbers, out on Thursday, impacted market risk sentiment mid-week.