Asian stocks set for gains as bond yields dip

Asian stocks set for gains as bond yields dip

News: Asian stocks set for gains as bond yields dip.

NEW YORK (Reuters) – Asian stocks got off to a strong start on Friday after Wall Street and Europe fell sharply overnight as a further decline in bond yields eased worries about rampant inflation and appetite for the battered TechShares restored.

Eurozone bond yields fell after the European Central Bank said it was ready to accelerate money pressures to keep borrowing costs under control and the € 1.85 trillion Pandemic Emergency Purchase Program (PEPP) Be more generous in the coming months to stop an unjustified increase in borrowing costs.

Japan’s Nikkei 225 futures rose 0.62% and Hong Kong’s Hang Seng index futures rose 0.55%.

The e-mini futures for the S&P 500 rose 0.99%.

The Australian S & P / ASX 200 futures rose 0.55% in early trading.

“It looks like we are seeing a positive opening in the markets in the Asia-Pacific region,” said Michael McCarthy, chief markets strategist for CMC Markets. “The big news overnight was the ECB’s decision. There may be some disappointment that they haven’t expanded their bond purchase program, but this is largely offset by commitments to accelerate purchases. “

The German 10-year yield was last at -0.332 after falling to -0.367%, its lowest level since February 18 and further away from the nearly one-year high of -0.203% in late February.

The benchmark 10-year Treasury note yield fell 1.475%, the first time it had fallen below 1.5% in a week. It last returned 1.5352%, down from 1.52% late Thursday.

On Wall Street, easing inflation worries helped prop up stocks, with the esteemed tech sector ahead of the pack, up 2.12%. Expensive stocks, many of which are in the tech sector, have been very sensitive to recent increases in yields.

In contrast, stocks of bank stocks lost 0.47%. While the Dow and S&P 500 closed at record highs, the tech-heavy Nasdaq accelerated gains, rising more than 2% that day.

The Dow Jones Industrial Average rose 0.58%, the S&P 500 rose 1.04%, and the Nasdaq Composite rose 2.52%.

Sentiment was also bolstered by weekly jobless claims data, which pointed to a rebound in the US labor market as the introduction of vaccines led to economic reopenings.

European stocks rose, with the pan-European STOXX 600 up for a fourth straight day, the longest winning streak in five weeks, with the index closing at its highest level since February 21, 2020. The STOXX 600 index rose 0.49% and the MSCI The global equity portfolio rose 1.37%.

A 30-year US debt auction Thursday was seen as slightly weak, but nowhere near the disappointing seven-year auction in late February, which fueled inflation concerns and skyrocketed yields.

Analysts broadly believe that inflation will accelerate as the introduction of vaccines reopens the economy. However, concerns remain that additional incentives in the form of a $ 1.9 trillion coronavirus aid package signed by U.S. President Joe Biden could overheat the economy.

The dollar was weaker for a third straight day after hitting a 3-1 / 2-month high of 92.506 on Tuesday.

The dollar index fell 0.43% and the euro fell 0.01% to $ 1.1983.

After two days of decline, oil prices resumed spikes on the brightening economic outlook and a decline in the dollar.

US crude rose 2.5% to $ 66.02 a barrel and Brent rose to $ 69.63, up 2.6% on the day.

Reporting by Matt Scuffham; Adaptation by Sam Holmes

Original Source © Reuters

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