Asian equities changed little ahead of a series of Chinese economic data on Friday, while world stocks generally flew at a record level, fueled by strong US economic data ahead of a solid recovery.
MSCI’s widest index of Asia-Pacific stocks outside Japan (.MIAPJ0000PUS) changed little while Japan’s Nikkei (.N225) rose 0.2%.
China will release a series of economic data later in the day, including its GDP in the first quarter.
MSCI’s broadest benchmark of world equities (.MIWD00000PUS) rose steadily to 0.89 percent the previous day to a record high.
“The U.S. economic data released yesterday was strong, confirming that the U.S. economy is strongly on a recovery path,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.
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The brightening economic outlook has been underlined by other data, including first-time claims for unemployment benefits that dropped to their lowest level since March 2020 last week.
Despite strong data, US bond yields have fallen, driven in part by Japanese purchases, as it began a new financial year this month.
Ten-year U.S. Treasury yields fell to 1.529% on Thursday, a five-week low, last rising to 1.566%, below the 14-month high of 1.776% set at the end of March.
“The market has praised an economic recovery in the US in the short term. And if the Federal Reserve keeps interest rates for the next two to three years, the execution of US bonds will undoubtedly be very attractive compared to Japanese countries. the eurozone, ”said Chotaro Morita, chief strategist for fixed income at SMBC Nikko Securities.
The decline in long-term returns has favored stocks, and especially technology stocks, given the idea that their historically expensive valuations can be justified because investors have no choice but to buy stocks to make up for low-yield bonds.
On Wall Street, the S&P 500 (.SPX) rose 1.11%, while the tech-savvy Nasdaq Composite (.IXIC) added 1.31%, approaching its February high.
In the foreign exchange market, the US dollar was lower yields.
The euro stood at $ 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 were maintained after reaching a four-week high on Thursday, following positive US economic data and higher demand forecasts from the International Energy Agency (IEA) and OPEC.
Brent futures stood at $ 66.93 a barrel, while U.S. crude oil also changed little at $ 63.42 a barrel, both on course for their first significant weekly profit in six.
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