The halt to the recent bond market sell-off calmed investors’ nerves, although concerns over Chinese demand weighed on oil.
Asia extended the global equity rally on Tuesday as the halt in the recent bond market sell-off calmed investors’ nerves, although oil prices fell amid demand concerns in China, where the latest data showed sluggish industrial activity.
The largest MSCI index of Asia-Pacific stocks outside of Japan strengthened 0.97%, while Japan’s Nikkei edged down 0.12%.
Australian stocks continued their ascent on Tuesday, with the S & P / ASX 200 index rising 1.05%, its highest level since February 19, as the United States rolled out a new COVID-19 vaccine and the optimism over a coronavirus relief program has boosted hopes for a faster global economic recovery.
Chinese blue chips rose 0.58% at the start of trading, while Hong Kong’s Hang Seng rose 0.9%, helped by stable and robust investor demand in mainland China.
The continent will begin its annual session of parliament on Friday in Beijing, which is expected to pave the way for economic recovery.
US stocks rebounded overnight, with the S&P 500 posting its best day in nearly nine months, as bond markets calmed down after a month of sell off.
At its monthly policy meeting on Tuesday, the Reserve Bank of Australia said it would keep policy rates historically low at 0.1% and stressed that its employment and inflation targets would probably not be reached before 2024 at the earliest.
“There is everything to love about rallying in the European and US stock markets,” said Chris Weston, head of research at Pepperstone Group Ltd in Australia. “Financials outperformed, with 95% of S&P 500 stocks winning that day,” he said, adding that “investors clearly see the world in a new light”.
Treasury bills have grown
US stocks were troubled last week when a T-bill sell-off pushed the benchmark 10-year T-bill yield to a one-year high of 1.614%. The 10-year yield edged down slightly at the start of trade to 1.4204 percent.
The US dollar index gained 0.14% at the start of trading against a basket of currencies to stand at 91.142, in preparation for a three-week high reached overnight.
A stronger dollar weighed on gold, and the precious metal was on the defensive at $ 1,711,4,100 an ounce early Tuesday.
Oil prices, meanwhile, fell more than 1% overnight after data showed Chinese factory activity growth was the slowest in nine months in February, in part due to disruption during the Lunar New Year holidays. Energy investors were also concerned that OPEC would increase global supply following a meeting this week.
Brent crude fell 1.27% to $ 62.88 a barrel, while US West Texas Intermediate crude fell 1.3% to $ 59.85.