"Asia's Stock Market Rally Mirrors US Optimism, Eyes on Japan Yields"

Bonds dropped and stocks struggled for direction as traders analyzed comments from central bankers for clues on interest rate movements. European Central Bank President Christine Lagarde suggested the possibility of a rate hike, while Federal Reserve Bank of Minneapolis President Neel Kashkari expressed optimism about inflation despite potential job losses and slower growth. Yields on German bonds and US Treasuries rose. The Bank of Japan announced unscheduled bond purchases to contain a selloff after allowing yields to rise above a 0.5% cap. Earnings reports and government stimulus expectations in China influenced market sentiment.