Asian stock markets : https://tmsnrt.rs/2zpUAr4
Nikkei falls 0.6%, but recoups most early losses
Nasdaq futures weighed by 12% dive in Super Micro
Dollar edges up, market trims wagers on Fed rate cuts
By Wayne Cole
SYDNEY, Aug 7(Reuters) - Asian share markets were mostly firmer on Wednesday after Wall Street bounced and concerns about a U.S. recession were reassessed, though Japanese stocks took a dip as heightened volatility squeezed leveraged positions.
The Nikkei's .N225 drop of 0.6% was relatively minor compared with Monday's 13% dive and Tuesday's 10% rally, leading to hopes investors were finding their footing.
"The sell-off in Japanese stocks may almost be over," said analysts at JPMorgan in a note. "Both nonresident and individual investors have reset their year-to-date net buying."
"If the market stays at its current level, the GPIF (government pension fund) could become a net buyer by end-September, and a view that unwinding of yen carry trades is almost over has also emerged."
The GPIF is a massive fund with considerable market power and its investment decisions are highly influential.
The unravelling of the yen carry trade - where investors borrow yen at low rates to buy higher yielding assets - was a driving force in the market rout, but again seemed to be stabilising.
The dollar edged up 0.2% to 144.67 yen JPY=EBS and away from the 141.675 trough hit on Monday, though it remains far below its July peak of 161.96.
The dollar also gained on the safe-haven Swiss franc to 0.8532 CHF= , up from Monday's low of 0.8430.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 0.4%, while Korean stocks .KS11 added 0.8%.
After bouncing overnight, Nasdaq futures NQc1 eased 0.1% in part due to a 12% dive in AI darling Super Micro Computer SMCI.O after it missed earnings estimates.
S&P 500 futures ESc1 steadied from an early drop, while EUROSTOXX 50 futures STXEc1 firmed 0.5%. FTSE futures FFic1 added 0.7%, and DAX futures FDXc1 rose 0.3%.
With safe-haven in less demand, Treasury yields ticked higher for a second session. U.S. 10-year yields US10YT=RR were up at 3.908%, and well off Monday's low of 3.667%.
Two-year yields US2YT had climbed back to 3.997%, from a deep trough of 3.654%, as markets scaled back wagers on an intra-meeting emergency rate cut from the Federal Reserve.
Futures now imply 105 basis points of easing this year, compared with 125 basis points at one stage during Monday's turmoil, while a 50-basis-point cut in September seen as a 73% chance. FEDWATCH
Fears of an imminent U.S. recession had also faded a little as the run of economic data still pointed to solid economic growth in the current quarter.
The Atlanta Fed's much-watched GDPNow estimate is that gross domestic product is running at an annual pace of 2.9%.
In commodity markets, gold prices were holding at $$2,386 an ounce XAU= and short of last week's $2,477 top.
Oil prices remained volatile as concerns about waning global demand warred with the risk of supply disruptions in the Middle East.
Brent LCOc1 slipped 18 cents to $76.30 per barrel, while U.S. crude CLc1 fell 26 cents to $72.94 a barrel.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Asia stock markets https://tmsnrt.rs/2zpUAr4Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> ((To read Reuters Markets and Finance news, click onhttps://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on:
0#.INDEXA ))
