Most Asia Stocks Rise as Treasury Yields Steady: Markets Wrap

Most Asia Stocks Rise as Treasury Yields Steady: Markets Wrap
Andreea Papuc and Emily Barrett
·3 min read

(Bloomberg) -- Most Asian stocks rose Tuesday after a rally in the U.S., as investors shook off concerns about the impact of higher bond yields. Treasuries were steady.

Gains in the region were subdued in comparison with the broad-based rally in the U.S. overnight. Stocks slipped in Japan and climbed in Australia. They surged in South Korea which reopened after a holiday. Hong Kong’s market was modestly higher as the compiler of the city’s benchmark unveiled its biggest revamp of the Hang Seng Index. U.S. equity futures fluctuated. The dollar ticked higher against most major peers.

Oil retreated to trade just below $60 a barrel ahead of a key OPEC+ meeting this week that may return more supply to the market. After the close of regular trading, Zoom Video Communications Inc. rose as its revenue forecast topped Wall Street’s estimates.

Investors piled back into risk assets following a selloff triggered by concern that massive stimulus as well as progress in battling the coronavirus have put some areas of the economy at risk of overheating. Traders are braced for how Federal Reserve officials slated to speak this week might respond to the recent tumult in bond markets.

“There’s nothing wrong with longer term interest rates where they are; financial conditions broadly are still fairly easy,” said Julia Coronado, founder of MacroPolicy Perspectives LLC. “Given the stabilization we’ve seen since Thursday, the Fed can breathe a sigh of relief.”

On the virus front, global cases rose for the first time in almost two months in the past week, the World Health Organization said, citing countries easing restrictions, people letting their guard down and variants spreading.

Elsewhere, Bitcoin rallied after a volatile weekend session as Citigroup Inc. laid out a case for the digital asset to play a bigger role in the global financial system.

There are some key events to watch this week:

U.S. Federal Reserve Beige Book is due Wednesday.OPEC+ meeting on output Thursday.U.S. factory orders, initial jobless claims and durable goods orders are due Thursday.The February U.S. employment report on Friday will provide an update on the speed and direction of the nation’s labor market recovery.

These are some of the main moves in markets:

Stocks

S&P 500 futures were little changed as of 10:31 a.m. in Tokyo. The S&P 500 Index surged 2.4%.Topix index was down 0.4%.Australia’s S&P/ASX 200 Index gained 0.4%.South Korea’s Kospi index rose 2.2%.Hong Kong’s Hang Seng Index rose 0.4%.Shanghai Composite Index rose 0.1%.

Currencies

The yen traded at 106.90 per dollar, down 0.1%.The offshore yuan was at 6.4727 per dollar.The Bloomberg Dollar Spot Index rose 0.1%.The euro was at $1.2033, down 0.1%.

Bonds

The yield on 10-year Treasuries held at 1.42%.Australia’s 10-year bond yield was steady at 1.67%.

Commodities

West Texas Intermediate crude declined 1.2% to $59.92 a barrel.Gold dipped 0.4% to $1,718.67 an ounce.

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©2021 Bloomberg L.P.

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