Asian Stocks Climb After U.S. Shares Hit Record: Markets Wrap

(Bloomberg) -- Asian stocks rose Friday after U.S. shares reached a record on optimism about a stimulus-fueled economic recovery. Equity trading volumes were below average because of holidays across the region.

Chip-makers bolstered South Korean equities following a report that the U.S. plans to meet with semiconductor and auto companies to discuss the global microprocessor shortage. Markets in Japan and China posted modest gains.

U.S. equity futures edged up after the S&P 500 closed above 4,000 for the first time. Tech shares outperformed and value stocks rallied as traders weighed President Joe Biden’s $2.25 trillion spending plan and signs of faster growth.

Treasuries rebounded after the worst quarter in decades with 10-year yields falling back below 1.7%. The dollar retreated. Oil climbed after the OPEC+ alliance agreed to boost output gradually. In Asia, markets including Australia, Hong Kong, Singapore and India are shut for holidays, as are many worldwide.

Investors are cheering increasing signs of strength in the U.S. economy. Manufacturing growth roared ahead in March, and government job-market data due Friday are expected to show the first in a series of outsized monthly increases. Biden’s plan to rebuild infrastructure strengthens the outlook, though questions remain about how much of it can actually be delivered.

Investors for now are looking past worsening virus trends, such as Chile’s move to close its borders for April and a lockdown in France. They remain focused on inflation risk amid the economic rebound.

“Before you worry about inflation, there’s reflation and I think that’s the main theme in the market,” said Ed Campbell, fund manager and managing director at QMA.

Traders are braced for the U.S. jobs report, which could roil the bond market in a holiday-shortened trading session. Very strong data may push benchmark yields back toward a recent one-year peak of 1.77%.

Some key events to watch this week:

• U.S. employment report for March on Friday.
• Good Friday starts the Easter weekend in countries including the U.S., U.K., France, Germany, Australia and Canada.

These are some of the main moves in financial markets:

Stocks

• S&P 500 futures were up 0.2% as of 12:45 p.m. in Tokyo. The S&P 500 Index increased 1.2% Thursday.
• Japan’s Topix index climbed 0.5%.
• South Korea’s Kospi index advanced 0.8%.
• China’s Shanghai Composite added 0.4%.

Currencies

• The yen was little changed at 110.62 per dollar.
• The offshore yuan added 0.1% to 6.5692 per dollar.
• The Bloomberg Dollar Spot Index fell 0.3% Thursday.
• The euro traded little changed at $1.1780.

Bonds

• The yield on 10-year Treasuries fell seven basis points to 1.67% on Thursday.

Commodities

• West Texas Intermediate crude rose 3.9% to $61.45 a barrel on Thursday.
• Gold added 0.1% to $1,731.72 an ounce.

©2021 Bloomberg L.P.