© Reuters. ARCHIVE PHOTO: A man goes through a stock quote board at a Tokyo brokerage
By Andrew Galbraith and Matt Scuffham
SHANGHAI / NEW YORK (Reuters) – Asian stocks rose on Friday after U.S. President Joe Biden sanctioned a $ 1.9 trillion stimulus bill and as a decline in bond yields during the Overnight, global concerns about rising inflation eased.
Biden signed the stimulus legislation before a televised speech in which he promised aggressive action to speed up vaccinations and bring the country closer to normal by 4 July.
The signing of the American Rescue Plan gave new impetus to market sentiment after the European Central Bank said it was ready to accelerate the printing of money to contain borrowing costs, using its 1.85 Pandemic Emergency Purchase Program. trillion euros (PEPP) more generously in the coming months, to prevent any unjustified increase in debt financing costs.
That and a better-than-expected U.S. government bond auction could support a rebound in technology stocks and a turnaround between growth and value stocks in the coming weeks, said Cliff Zhao, chief strategist at China Construction Bank ( OTC 🙂 International in Hong Kong.
“But in the second quarter, the market will still (be) very volatile and, especially when we look at the US dollar, it is much stronger than expectations at the end of last year. So, I think the strong US dollar may weigh on some liquidity conditions in emerging markets, “he said.
The broader MSCI index for Asia Pacific stocks outside Japan gained 0.45% on Friday morning, supported by technology gains.
Seoul shares rose 1.12%, Taiwan shares rose 0.21% and Australia shares rose 0.85%.
rose 0.99%, but China’s top-tier CSI300 index lost 0.43% as a result of the drop in companies with high appreciation for technology and consumption in that country.
U.S. Treasury yields were higher on Friday, with the 10-year yield at 1.5405%, after dropping to 1.475% overnight, its first foray below 1.5% in a week.
The German 10-year yield was -0.331%, after reaching a three-week low of -0.367%.
“There may be some disappointment (the ECB) has not expanded its bond buying program, but this is largely offset by initiatives to speed up purchases,” said Michael McCarthy, chief market strategist at CMC Markets.
On Wall Street, easing inflation concerns has helped to sustain stocks. The increase of 0.58% and the increase of 1.04%, both for record highs. O added 2.52%.
The sentiment was also boosted by weekly unemployment benefit claims, which pointed to a recovery in the US labor market, as vaccine launches helped lead to economic reopens.
Analysts expect inflation to rise as the launch of vaccines leads to a reopening, but concerns remain that Biden’s stimulus package may overheat the economy.
The dollar gained 0.22% against the yen, to 108.73, and the euro fell 0.1% on the day, to $ 1.1975. The, which tracks the dollar against a basket of six major rivals, rose to 91,488.
Oil prices retreated from sharp gains with the dollar steadying, down 0.3% to $ 65.82 per barrel. lost 0.24% to $ 69.46 a barrel.
prices have changed little, up less than 0.1%, to $ 1,722.40 an ounce.
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