SINGAPORE (Reuters) – U.S. treasuries fell on Thursday on reports that elected President Joe Biden would announce a massive $ 2 trillion stimulus package, while Japanese stocks jumped to a three-decade high. New as investors expand their stakes on global growth recovery.
The return on the 10-year US Treasury Benchmark rose 2 points to 1.1105% after CNN reported on the possibility that Biden could spend $ 2 trillion, much more than the market expected and would be funded. From borrowing
Japan’s Nikkei closed up 0.9 percent at its highest level since August 1990, with a 25 percent increase since late October.
MSCI’s Asia-share index outside Japan held steady, shorter than all-time highs.On Monday, the S&P 500 futures FTSE and EuroSTOXX 50 futures all rose about 0.2 percent.
Treasury yields jumped this year on Wednesday as another confirmation from the Federal Reserve on the buying program led to a heavy sell-off of bonds and investors bet that the time spending agenda. Big can clear the Democratic-controlled Congress.
Biden is scheduled to outline his economic plan on Thursday, and Federal Reserve Chairman Jerome Powell will also speak, potentially raising returns again.
“The number one question for global equities and markets is when the Fed will start downsizing,” said Frank Ben Zimra, head of Asia Shareholding Strategy at Societe General in Hong Kong.
“This is where you will be concerned … but at the moment it’s a little premature. We are in a context where you have accelerated growth, economic indicators are good, and in the United States, the likelihood of fiscal stimulus increases. ”
The currency markets are taking a bit more of a wait-and-see approach as investors short on the dollar and wonder if the eventual decline might limit the dollar’s decline.[FRX/]
The dollar rose 0.2 percent to 104.12 yen on U.S. yields after a CNN report cited one lawmaker contacting Biden’s advisers as the source.
The Australian and New Zealand dollars strengthened after a slight drop overnight, with the Aussies at $ 0.7761 and Kiwi at $ 0.7203. The euro fell broadly. But a small loss of $ 1.2151 and 126.42 yen.
At the same time, the stellar economic statistics continue to circulate in North Asia. Chinese exports expanded more than expected in December, indicating strong global demand, while machinery orders rose for a second straight month in Japan.
China’s blue chips eased from a 13-year high on Wednesday as investors took some profits. [.SS]
Hong Kong-listed shares of tech giants Alibaba and Tencent rose after sources told Reuters and the Wall Street Journal it plans to extend a U.S. investment ban to such stocks.
In Washington, the Democratic-controlled House of Representatives has blamed President Donald Trump for the second time. But the market is more focused on attacking Chinese companies.
Trump supported a U.S. investment ban on Chinese companies considered military ties, clarifying late Wednesday that American investors were unable to own them after November 2021.
In commodities, oil futures make little losses as rising coronavirus cases raise concerns about greater shutdowns and lower energy demand. Brent crude futures were flat at $ 55.95 a barrel and US crude futures were flat at $ 52.88.
Gold, which does not pay interest, suffered as U.S. yields rose and traded 0.2 percent lower at $ 1,840 an ounce, well below a two-month high of $ 1,959 last week. [GOL/]
Reporting by Tom Westbrook in Singapore and Chibuike Oguh in New York, additional reporting by Junko Fujita in Tokyo Editing by Cynthia Osterman, Gerry Doyle and Kim Coghill.