Asia Stocks Rebound, Bonds Lag as Markets Brace for Rate Hikes Amid China Trade Strength

Asian stock markets saw a rally on Tuesday, with oil prices easing, as investors bought into the latest dip in semiconductor stocks. This comes as China's May trade data showed exports up 19.4% and imports up 27.4%, both exceeding median forecasts. However, bond markets are on the defensive, repricing for tighter monetary policy following a strong May U.S. payrolls report, with futures implying around a 60% chance of a Federal Reserve rate rise as soon as October. Markets are also fully pricing in a quarter-point hike from the European Central Bank when it meets on Thursday.