Asian stocks rose on Tuesday, following a rally on Wall Street, while the dollar held near a fourth-month low as inflation fears faded after Federal Reserve officials raised allayed fears of a tightening of monetary policy.
At the start of European trading, pan-regional Euro Stoxx 50 futures rose 0.27%, while German DAX futures and FTSE futures rose 0.14% and 0.21 respectively. %. US equity futures, the S&P 500 e-minis, rose 0.27%.
In Asia, the region’s major regional market gauges soared with the largest MSCI Asia-Pacific Ex-Japan Stock Index (.MIAPJ0000PUS) rising 1.3% to a two-week high, after US stocks finished the previous session with slight gains.
“Markets were buoyant as the data flow failed to live up to the high inflation rhetoric, and amid repeated advice from key central bank figures that the current rise in inflation is temporary ANZ analysts wrote in a note.
Australian stocks (.AXJO) rose 0.81% to a two-week high. Japan’s Nikkei stock index (.N225) jumped 0.6%, boosted by heavy local tech stocks, although gains were contained by fears of a slow economic recovery due to slow deployments of vaccines in the country.
“In general, when technology rebounds in the United States, well-known Asian tech stocks tend to follow suit,” said Catherine Yeung, chief investment officer at Fidelity International.
Chinese stocks in particular hit a 2-1 / 2 month high on financials and consumer gains. The blue-chip CSI300 (.CSI300) jumped 2.58%, while the benchmark Shanghai Composite Index (.SSEC) rose 2.03%, reaching its highest level since early March. Hong Kong’s Hang Seng Index (.HIS) rose 1.43%.
“As the economic recovery in China continues and commodity prices begin to stabilize, this would help allay inflation concerns and mend investor sentiment,” said Hong Hao, head of the research at BoCom International. “The country’s stock markets also have room to rebound from steep falls in February. “
The US National Activity Index of 0.24 versus expectations above 1, along with accommodating comments from Federal Reserve speakers, helped support the idea that policy will remain in limbo for some time.
Yet after the global service sector surveys showed strong growth last Friday, all eyes will be on the release of personal consumption data for the United States on Thursday, the Fed’s preferred measure of inflation.
Wall Street closed higher on Monday as lower benchmark T-bill yields helped lift expensive stocks in sectors such as tech, industry majors Apple (AAPL.O) up 1 , 33% and Microsoft (MSFT.O) by 2.29% up.
The Dow Jones Industrial Average (.DJI) rose 0.54%, while the highly technological S&P 500 (.SPX) and Nasdaq Composite (.IXIC) rose 0.99% and 1.41 respectively. %.
T-bill yields, which fell on Monday after a few Fed officials affirmed their support for maintaining an accommodative monetary policy for a while, have not changed much. The benchmark 10-year Treasury yield was 1.6063%, a two-week low.
“I think there will come a time when we can talk more about changing the parameters of monetary policy, I don’t think we should be doing that while we are still in the pandemic,” said James Bullard, chairman of the Federal Reserve Bank of St. Louis said Monday. Read more
Digital currencies rebounded on Monday after last week’s crypto rout, regaining ground lost in a weekend sale to the news of China’s crackdown on mining and crypto trading. currencies. Read more
After losing 13% on Sunday, Bitcoin, the world’s largest cryptocurrency, was last down 1.84% to around $ 38,124.
The dollar index, which tracks the greenback against a basket of currencies from other major trading partners, edged down to 89.772, just above a four-month low. The single European currency rose 0.1% on the day to $ 1.2225, after gaining 1.72% in one month.
US crude rose 0.08% to $ 66.1 a barrel. Brent rose to $ 68.6 per barrel.
Gold was slightly lower. Spot gold traded at $ 1,873.64 an ounce.
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