Asia Morning Call-Global Markets

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** indicates closing price

All prices as of 20:28 GMT

EQUITIES

GLOBAL - U.S. stocks were mixed and benchmark Treasury yields jumped to their highest level since March on Thursday as robust economic data helped ease recession fears, but also increased the odds that the Fed will keep its restrictive policy in place for longer than expected.

The pan-European STOXX 600 index SXXP rose 0.13% although MSCI's gauge of stocks across the globe EURONEXT:IACWI was flat.

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NEW YORK - The Dow and the S&P 500 rose on Thursday as bank shares rallied after major lenders cleared the Federal Reserve's annual stress test, while strong economic data stoked expectations of further interest rate hikes from the central bank.

According to preliminary data, the S&P 500 SPX gained 20.18 points, or 0.46%, to end at 4,397.04 points, while the Nasdaq Composite IXIC gained 0.25 points, or 0.00%, to 13,591.33. The Dow Jones Industrial Average DJI rose 266.88 points, or 0.79%, to 34,119.54

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LONDON - European shares edged higher on Thursday with Swedish retailer H&M rallying on stronger-than-expected quarterly profit, but economic data from both sides of the Atlantic and hawkish signals from major central bankers weighed on markets.

The pan-European STOXX 600 index SXXP closed 0.1% higher.

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TOKYO - Japan's Nikkei share gauge extended gains for a second session on Thursday as a weaker yen boosted exporters, overshadowing profit-taking by some investors.

The Nikkei NI225 rose 0.12% to close at 33,234.14, after jumping as much as 1% earlier.

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SHANGHAI - Japan's Nikkei share gauge extended gains for a second session on Thursday as a weaker yen boosted exporters, overshadowing profit-taking by some investors.

The Nikkei NI225 rose 0.12% to close at 33,234.14, after jumping as much as 1% earlier.

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AUSTRALIA - Australian shares were set to open higher on Friday amid cautious trading as investors shrugged off recessionary fears amid a local retail spending rebound and easing inflationary print.

The local share price index futures (YAPcm1) rose 0.2%, a 29.9-point discount to the underlying S&P/ASX 200 index XJO close. The benchmark ended flat on Thursday.

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SEOUL - South Korean shares fell on Thursday, as worries about interest rate hikes in the United States overshadowed optimism for the semiconductor industry. The Korean won weakened, while the benchmark bond yield rose.

The benchmark KOSPI KOSPI closed 14.17 points lower, or down 0.55%, at 2,550.02, reversing its earlier gain of as much as 0.53%.

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FOREIGN EXCHANGE

NEW YORK - The U.S. dollar index climbed to a two-week high on Thursday after economic data showed the labor market remained on a solid footing, giving the Federal Reserve a possible cushion to continue raising interest rates.

The dollar index DXY rose 0.35% at 103.310 after climbing to 103.44, its highest level since June 13.

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SHANGHAI - China's yuan eased against the dollar on Thursday, despite the central bank setting the daily midpoint fixing stronger than expected, in what investors interpreted as an official attempt to rein in weakness in the currency.

In the spot market, the onshore yuan USDCNY opened at 7.2288 per dollar and weakened to a low of 7.2525 at one point, its weakest level since November.

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AUSTRALIA - The Australian and New Zealand dollars were scrambling to find support on Thursday after a wave of selling overnight swamped major chart levels and took them to three-week lows.

The Aussie managed a minor lift to $0.6609 AUDUSD, after losing 1.3% on Wednesday and breaching a retracement bulwark at $0.6626.

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SEOUL - The Korean won weakened on Thursday, while the benchmark bond yield rose.

The won ended onshore trade USDKRW at 1,317.6 per dollar, 0.78% lower than its previous close at 1,307.3.

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TREASURIES

NEW YORK - U.S. Treasury yields surged on Thursday after upbeat U.S. data solidified the picture of an economy and job market defying predictions of a recession, underpinning pronouncements from the Federal Reserve's chief that there is little room to let up on monetary tightening.

In afternoon trading, the yield on 10-year Treasury notes US10Y was up 14.2 basis points (bps) at 3.854%, after earlier hitting a more than three-month high of 3.868%.

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LONDON - Treasury yields rose to three-month highs on Thursday after U.S. data solidified the picture of an economy and job market defying predictions of recession a day after the U.S. central bank chief reiterated that there is little room yet to let up on monetary tightening.

The yield on 10-year Treasury notes US10Y was up 14.2 basis points to 3.854%.

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TOKYO - Most Japanese government bond yields fell on Thursday, tracking U.S. Treasury yields lower overnight, but declines were limited as investors refrained from buying debt with yields at current level.

The 10-year JGB yield (JP10YTN=JBTC) fell 0.5 basis point (bp) to 0.380% and the 20-year JGB yield (JP20YTN=JBTC) fell 1 bp to 0.955%.

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COMMODITIES

GOLD

Gold regained some ground on Thursday as traders took advantage of a brief dip below the key psychological $1,900 level that was driven by a volley of robust U.S. economic readings.

Spot gold GOLD edged up 0.2% at $1,911.69 per ounce by 11:25 a.m. EDT (1525 GMT). U.S. gold futures GCcv1 shed 0.1% to $1,919.80.

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IRON ORE

Dalian iron ore futures climbed to their highest levels in 15 weeks on Thursday, underpinned by renewed optimism around prospects of further stimulus to support China's faltering economic recovery, but prices in Singapore were subdued.

The steelmaking ingredient's most-traded September contract on China's Dalian Commodity Exchange TIO1! ended daytime trade 0.9% higher at 830.50 yuan ($114.71) per metric ton, after earlier hitting 835 yuan, its strongest since March 16.

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BASE METALS

Copper prices hit a one-month low on Thursday, hurt by a strong dollar, concerns about higher interest rates denting global economic growth and signs of weak demand in top metals consumer China.

Three-month copper on the London Metal Exchange HG1! was down 1.0% at $8,175 per metric ton by 1610 GMT, after hitting $8,141, its lowest since June 1.

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OIL

Oil prices settled higher on Thursday after flip flopping during the session, supported by a bigger draw than expected in U.S. crude inventories but pressured by fears that rising interest rates could dent global economic growth.

Brent crude futures BRN1! rose 31 cents, or 0.4%, to $74.34 a barrel.

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PALM OIL

Malaysian palm oil futures ended at a more than one-week high on Wednesday, rebounding from the previous session's losses, as crude and rival edible oils gained.

The benchmark palm oil contract FCPO1! for the September delivery on the Bursa Malaysia Derivatives Exchange closed up 81 ringgit, or 2.20%, to 3,756 ringgit ($804.45) per metric ton, its highest since June 19.

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RUBBER

Japanese rubber futures skidded on Thursday as concerns over a slow economic recovery in top buyer China outweighed support from a weaker yen against the U.S. dollar.

The Osaka Exchange (OSE) rubber contract for December delivery TRB1!, TRB1! finished 0.3 yen lower at 205.3 yen ($1.4) per kg.

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