Asian stocks changed slightly on Friday ahead of a series of Chinese economic data, while global equities flew at a record high, fueled by strong US economic data that could herald a solid recovery.
The broader MSCI index of Asia-Pacific equities outside Japan (.MIAPJ0000PUS) was slightly changed, while the Japanese Nikkei (.N225) rose 0.2%.
China will release a series of economic data later that day, including its first-quarter GDP.
MSCI’s largest range of stocks worldwide (.MIWD00000PUS) remained constant after gaining 0.89 percent the previous day to a record high.
“US economic data released yesterday was strong, confirming that the US economy is on a firm recovery,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.
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The booming economic outlook was highlighted by other data, including first-time claims for unemployment benefits which fell last week to their lowest level since March 2020.
Despite strong data, US bond yields have fallen, driven in part by Japanese acquisitions, as a new financial year began this month.
The 10-year yield of the US Treasury fell to 1.529%, the lowest for five weeks on Thursday and rose to 1.566%, down from the 14-month high of 1.776% set at the end of March.
“The market has already fully priced in a short-term US economic recovery. And if the Federal Reserve keeps interest rates on hold for the next two to three years, there is no doubt that the carry-over of US bonds would be very attractive compared to the Japanese or eurozone bonds, “said Chotaro Morita, chief fixed income strategist at SMBC Nikko Securities.
The decline in long-term bond yields has benefited equities, especially technology stocks, given the idea that their historically expensive valuations may be justified, as investors would have no choice but to buy shares to offset low bond yields. .
On Wall Street, the S&P 500 (.SPX) advanced 1.11%, while Nasdaq Composite Heavy Technology (.IXIC) added 1.31%, approaching the record high in February.
In the foreign exchange market, lower US yields have been an obstacle to the US dollar.
The euro rose to $ 1.1965 after hitting a six-week high of $ 1.19935 overnight, while the US currency fell to a three-week low of 108.61 yen.
Oil prices remained high after reaching four-week highs on Thursday, following positive economic data from the US and higher demand forecasts from the International Energy Agency (IEA) and OPEC.
Brent futures remained at $ 66.93 a barrel, while US crude was also slightly lower at $ 63.42 a barrel, both on the rise for the first substantial weekly gains out of six.
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