Asian shares edged up on Monday while bond markets held their breath ahead of an update on the U.S. rate outlook from the world’s most powerful central banker, and a jobs report that could decide if the next hike needs to be super-sized.
There was some disappointment that Beijing chose to lowball its growth outlook with a target of 5%, rather than the 5.5%-plus favoured by the market, but the recent run of actual data has been strong enough to keep investors optimistic.
Chinese blue chips (.CSI300) slipped 0.5%, having gained 1.7% last week. MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was still up 0.7%.
Japan’s Nikkei (.N225) climbed 1.2% to a three-month top, while South Korean stocks (.KS11) added 1.0% helped by a softer reading on inflation.
EUROSTOXX 50 futures firmed 0.5%, while FTSE futures held steady. S&P 500 futures gained 0.2% and Nasdaq futures 0.4%, after rallying on Friday as bond yields eased back a little.
Yields on 10-year Treasuries stood at 3.94%, after last week’s spike to 4.09% proved tempting enough to attract buyers.
Markets have become resigned to more rate rises from the Federal Reserve but are hoping it will stick with quarter-point moves rather than switch back to half-point hikes.
This report’s information was first seen on REUTERS; to read more, click this link.
