Asian stocks rose Monday on optimism over the $1.9 trillion U.S. pandemic relief plan and the global recovery. Rising Treasury yields remained in focus and crude jumped after an oil facility was attacked.
Japanese shares were among outperformers while China and Hong Kong climbed. S&P 500 futures pared gains and Nasdaq 100 contracts slipped. The U.S. spending plan moves to the House after the Senate passed the legislation, while strong Chinese export data bolstered the outlook for the world economy.
Oil surged after Saudi Arabia said the world’s largest crude terminal was attacked. Ten-year Treasury yields ticked up. On Friday, U.S. stocks rebounded and the 10-year yield touched 1.6% after U.S. jobs data beat estimates.
Better economic data and the prospect of more fiscal stimulus have pushed up bond yields, spurring questions about equity valuations, especially for some high-growth technology stocks. Treasury yields are rising because of a much stronger economic outlook, Federal Reserve officials said Friday, playing down the need for a monetary policy response.
“Clearly with the stimulus measures in place, there is some concern for inflation, but nothing to derail the relatively positive outlook for equities at this point,” Rachel Farrell, chief executive officer of JPMorgan Asset Management in Australia, said on Bloomberg TV.
Here are some key events to watch:
The annual session of China’s National People’s Congress continues in Beijing.Japan GDP is due Tuesday.EIA crude oil inventory report is due WednesdayThe U.S. February consumer price index will offer the latest look at price pressures Wednesday.The European Central Bank holds its monetary policy meeting and President Christine Lagarde is set to do a briefing Thursday.
These are some of the main moves in markets:
Stocks
S&P 500 futures rose 0.3% as of 10:50 a.m. in Tokyo. The S&P 500 rose 2% Friday.Japan’s Topix index climbed 1%.Australia’s S&P/ASX 200 Index rose 1.6%.Hong Kong’s Hang Seng Index added 0.5%.Shanghai Composite Index climbed 0.9%.
Currencies
The yen slipped 0.1% to 108.40 per dollar.The offshore yuan was trading at 6.5078 per dollar, up 0.1%.The Bloomberg Dollar Spot Index dipped 0.1%.The euro was at $1.1926, up 0.1%.
Bonds
The yield on 10-year Treasuries rose two basis points to 1.59%.Australia’s 10-year bond yield fell six basis points to 1.78%.
Commodities
West Texas Intermediate crude climbed 2.4% to $67.68 a barrel.Gold rose 0.7% to $1,712.25 an ounce.
