TOKYO (Reuters) – Asian equities advanced on Tuesday, putting ongoing global equities to extend for the 12th consecutive session as optimism about the global economic recovery and expectations about low interest rates drive investment in assets never risky.
Oil prices rose to a 13-month high as a deep freeze due to a severe snowstorm in the United States not only increased energy demand but also threatened oil production in Texas.
The broadest MSCI index of Asia-Pacific equities outside Japan rose 0.45%, while the Japanese Nikkei rose 0.4% to a 30-year high.
In Hong Kong, the Hang Seng index rose 1.79% to a 32-month high in its first trading session on Thursday after the Lunar New Year holidays.
Markets in mainland China will remain closed for the holidays until Thursday, while Wall Street was closed on Monday.
Ord Minnett Adviser John Milroy said that while stock markets were positive, investors were worried about the future risk of inflation due to stimulus programs from the central bank and existing governments around the world.
“There is a clear meaning that with rates remaining low for some time and investors’ appetite for stocks remaining strong, markets are likely to hold for some time,” Milroy told Reuters.
“Getting traction is the thought that inflation could rise much faster and faster than the Fed currently believes. Then, if the rates increase to combat it, it happens to the stock markets and, of course, to the bond markets. ”
The optimistic view of the economy raised bond yields, with the 10-year US Treasury gaining 5 basis points to 1.245% in early Asian trade, the highest since the end of March.
Investors are awaiting the minutes of the US Federal Reserve meeting in January, due to be released on Wednesday, to confirm its commitment to maintaining its corrupt political position in the near future. This, in turn, is set to keep a sheet of bond yields.
However, some analysts say that investors should pay attention to bond yields.
“If US bond yields continue to rise, stocks could start to hurt,” said Masahiro Ichikawa, chief strategist at Sumitomo Mitsui DS Asset Management.
The S & P500 futures traded 0.65% higher to a record high, and the MSCI All Country World Index (ACWI), which rose every day until this month, rose slightly.
The successful launch of COVID-19 vaccines in many countries raises hopes of further recovery of economic activities hampered by the range of antivirus borders.
US President Joe Biden continues his plan to pump an additional $ 1.9 trillion into the economy to boost market sentiment.
Oil prices have risen sharply in the past 13 months as a US winter storm added fuel to their rally in hopes of a further recovery in demand.
US crude oil futures traded 1.1% at $ 60.11 a barrel.
Prices have risen in recent weeks in terms of tightening supplies, largely due to reduced production by the Organization of the Petroleum Exporting Countries (OPEC) and allied producers in the larger group of OPEC + producers.
Rising oil prices supported commodity-related currencies, such as the Canadian dollar, while safe haven currencies, including the US dollar, took second place.
The pound remained firm at $ 1.3910, remaining at its highest levels since April 2018.
The Chinese offshore yuan reached a high of 6.4010 per dollar overnight over 2-1 / 2 years and was last at 6.4030.
The MSCI emerging market currency index has also reached a record high.
The yen fell to $ 105.36, approaching the four-month low of 105.765 on February 5, while the euro rose 0.1% to $ 1.2142.
In Asia, Bitcoin traded at $ 48,088.28, in addition to its record $ 49,715 on Sunday.
Additional reporting by Tomo Uetake in Sydney; Edited by Shri Navaratnam