Asian stock as Biden stimulus sign; lower returns increase technology By Reuters

By Andrew Galbraith and Matt Scuffham

SHANGHAI / NEW YORK (Reuters) – Asian stocks rose higher on Friday after US President Joe Biden stimulated a $ 1.9 billion bill and eased global concerns about rising inflation overnight as a slowdown in bond yields has.

Biden signed the stimulus legislation ahead of a televised speech in which he promised aggressive action to speed up vaccinations and move the country closer to normalcy by 4 July.

The signing of the US bailout plan gave further boost to market sentiment after the European Central Bank said it was ready to accelerate money pressure to cover borrowing costs, using its Pandemic Emergency Purchase Program (PEPP) of 1, 85 billion euros more. during the coming months to stop unjustified increase in debt financing costs.

That and a better-than-expected U.S. government bond auction could support a rise in technology stocks and a reversal between growth and value stocks in the next few weeks, said Cliff Zhao, chief strategist at China Construction Bank (OTC 🙂 International in Hong Kong, said. Kong.

“But in the second quarter (the market) will still be very volatile, and especially if we look at the US dollar, it is much stronger than expected by the end of last year. So I think the strong US dollar some liquidity conditions may weigh in the emerging markets, ”he said.

MSCI’s broadest benchmark index of Asia-Pacific equities outside Japan rose 0.45% on Friday morning, backed by technological gains.

Seoul added 1.12%, Taiwan shares increased 0.21% and Australia 0.85%.

rose 0.99%, but China’s blue chip CSI300 index lost 0.43% as the country’s high valuation technology and consumer firms dragged on.

U.S. Treasury yields were higher on Friday, with the 10-year yield at 1.5405% after falling to 1.475% overnight, its first fall below 1.5% in a week.

The German yield for ten years was last at -0.331% after reaching a three-week low of -0.367%.

“There may be disappointment (the ECB) has not expanded their bond-buying program, but it is largely compensated by companies to accelerate purchases,” says Michael McCarthy, chief market strategist at CMC Markets.

On Wall Street, easing inflation concerns has helped support equities. The rise rose by 0.58% and the rise by 1.04%, both to a record high. The added 2.52%.

Sentiment is also boosted by weekly data on jobless claims, indicating a recovering U.S. labor market as vaccine rollouts have led to economic reopening.

Analysts largely expect inflation to increase as vaccine rollouts lead to a reopening, but there are concerns that Biden’s stimulus package could overheat the economy.

The dollar rose 0.22% against the yen to 108.73 and the euro fell 0.1% on the day to $ 1.1975. Those, who follow the greenback against a basket of six major competitors, finished at 91,488.

The oil price fell from the sharp rise as the dollar strengthened, falling 0.3% to $ 65.82 a barrel. lost 0.24% to $ 69.46 per barrel.

prices were little changed, by less than 0.1% at $ 1,722.40 per ounce.