© Reuters. A man walks past a stock quote at a brokerage firm in Tokyo
By Kevin Buckland
TOKYO (Reuters) – Global equities surged to a record high on Wednesday as bond yields fell after data showed U.S. inflation did not rise sharply as the economy reopened.
Most Asia-Pacific stock indices closely follow Wall Street higher, with Hong Kong’s leading gains in the region, while US benchmark treasury yields continue to fall, marking lows. most in three weeks.
indicates an increment of 0.1%.
Japan goes against this trend, with a 0.3% drop as increased coronavirus infections raise doubts about its economic resilience with another 100 days until Tokyo is planned. to host the Olympics.
European equities appear set to open modestly higher, with Euro Stoxx futures up 0.3% and futures 0.1% higher.
The US consumer price index rose 0.6%, the largest increase since August 2012, as intensified immunization and fiscal stimulus freed pent-up demand. But the data is unlikely to change Federal Reserve Chairman Jerome Powell’s view that higher inflation in the coming months will be temporary.
Powell is scheduled to speak later in the day at Washington’s Economic Club.
Westpac strategists wrote in a client note: “The market is clearly prepared for higher CPIs.
They said Tuesday’s results were “clearly being interpreted as the Fed is committed to examining ‘transient’ inflationary impulses.”
As for the bond market, the question arises as to whether standard yields can break below 1.6% from Wednesday’s low of 1.611%, they write.
“That is technically critical, if broken it can quickly rise to 1.5%.”
The coin surged from the beginning of the year to a 14-month high of 1.776% on March 30 due to a bet that massive fiscal stimulus will accelerate the US recovery, causing inflation to be faster than Fed policymakers’ predictions and made it raise interest rates earlier than expected.
But yields have fallen this month, partly due to the Fed’s emphasis that a sagging labor market will prevent the economy from overheating.
A series of strong auction results, including Tuesday’s 30-year bond, also helped to adjust yields. [US/]
The MSCI’s broadest Asia-Pacific stock index outside of Japan rose 0.8%. Hong Kong’s Hang Seng rose 1.4%, while China’s blue-chip index rose 0.5%.
MSCI’s equity performance metrics in 50 countries rose 0.2%, innovating at an all-time high.
“Once again, the markets are looking on the bright side, and even though inflation is higher than expected, it’s seen as a sign of,” said Michael McCarthy, chief market strategist at CMC Markets. grow better ”.
“We’ve seen support for those high-growth tech stocks and other areas impacted by economic growth, including finance.”
Falling bond yields have lifted US technology stocks overnight, including Apple Inc (NASDAQ :), Microsoft Corp (NASDAQ 🙂 and Amazon.com Inc (NASDAQ :), the top three companies in global benchmarks.
The index was up 0.33% as it also set an intraday high and closed a record, while gaining 1.05% more. Down by 0.2%.
Shares of Johnson & Johnson (NYSE 🙂 fell 1.34% after US federal health authorities recommended suspending the COVID-19 vaccine rollout for at least a few days, after six women developed development of rare blood clots. The failure to launch vaccinations has raised concerns about the global economic recovery.
Earnings will be the focus on Wednesday, with JPMorgan Chase & Co. (NYSE 🙂 and Goldman Sachs Group Inc (NYSE 🙂 among the reporting companies.
The US dollar fell along with the yields on treasury bonds, falling to a three-week low against major currencies. [FRX/]
Gold, a traditional inflation hedge, extended gains from a more than a week low to trading around $ 1,742 on the spot market.
hit a record above $ 64,500, extending the 2021 rally to new heights on the day Coinbase shares are listed in the United States.
On the oil market, futures prices rose 47 cents to $ 64.14 per barrel. futures contracts added 47 cents to $ 60.65.