Asian stocks rose on Tuesday, avoiding concerns over an increase in regional coronavirus infections and a subdued session on Wall Street, while nervousness about inflation helped push gold prices to three-month highs .
The largest MSCI Asia-Pacific stock index outside of Japan (.MIAPJ0000PUS) rose 1.06% after a mixed session on Monday, still failing to recoup the losses of recent weeks amid new clusters of cases of COVID-19 that are prompting some economies to impose new virus anti-measures.
Japan’s Nikkei (.N225) rose 2.2% on strong earnings reports and bargain hunting, while Hong Kong stocks rose 1.24%. China’s blue chip CSI300 index (.CSI300) was 0.20% lower.
Spot gold traded around $ 1,869.06 an ounce, near a three-and-a-half-month high, after the Empire State Manufacturing Survey, produced by the New York Fed, reported showed the highest prices paid since the start of the series in 2001. read more
“Markets appear poised to seize any upside surprises in growth and inflation data as involving a faster take-off of zero rates than indicated by the Fed’s own projections by policymakers,” the Fed strategists said. BlackRock’s investment in a note.
However, Dallas Federal Reserve Chairman Robert Kaplan on Monday reiterated his view that he does not expect an interest rate hike until next year, helping to reassure markets in the fact that the Fed won’t tighten sooner, traders said.
Markets await the release on Wednesday of the minutes of the Federal Reserve’s policy meeting last month, which could further shed light on policymakers’ outlook on inflation and an economic rebound. Read more
In Australia, the minutes of the central bank policy meeting in May showed that wages would likely have to rise “sustainably above 3%” to generate inflation, underlining how long rates could stay close to. zero. Wage growth is currently only 1.4%.
Australia’s benchmark index (.AXJO) rose 0.49%, while Singapore stocks (.STI) also recouped some losses, gaining 1.21% after falling 2% on Monday as the country reported the highest number of local infections in months. Read more
Shares in Taiwan, which is also seeing an increase in cases, also recovered when lawmakers said it was in talks with the United States for a share of the COVID-19 vaccine doses President Joe Biden plans to take. ‘send abroad. Read more
The dollar swung near its multi-month lows against European currencies as Treasury yields stagnated following Kaplan’s comments. Read more
Yields on U.S. Treasuries traded a basis point wider at 1.6505%, while the two-year yield, which rises with traders’ expectations of a hike in federal funds rates, has hit 0.1551% from a US close of 0.153%.
The dollar index was down 0.082%, the euro at $ 1.2157.
Overnight, the Dow Jones Industrial Average (.DJI) fell 0.16% to 34,327.79, while the highly technological Nasdaq Composite (.IXIC) fell 50.93 points, or 0.38%, to 13,379.05 and the pan-European STOXX 600 (.STOXX)) index lost 0.05%.
MSCI’s stock gauge across the world (.MIWD00000PUS) was 0.29% higher at 700.50.
Oil prices rose, with Brent crude and West Texas Intermediate (WTI) crude both rising about 0.3% at the start of Asian trade.
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