Bond returns money to stocks By Reuters


© Reuters. PHOTO FILE: A man wearing a helmet, in the midst of coronavirus infection (COVID-19), walks past a bulletin board showing the Shanghai Composite index, Nikkei index and Dow Jones Industrial Average on outside a brokerage in Tokyo, Japan, March 7,

By Tom Westbrook

SINGAPORE (Reuters) – Asia’s economy rose for three weeks on Wednesday as fixed markets returned to high -tech and other sectors, as Ukraine struggles to re -establish itself. to equipment that kept costs high.

MSCI’s largest index of Asia-Pacific regions outside Japan rose 0.6%, with Hong Kong, Seoul and Sydney registering similar earnings.

The index is at its highest since March 4. a 2.5% jump to touch a two -month high and the moves follow a 1.1% gain to close to 2% for the Nasdaq in overnight trading. .

Bond markets delayed their returns as investors prepared for the Federal Reserve to work out a more robust way to curb inflation. Two -year earnings rose 76 bps in March and a 10 -year high of about 60 bps to 2.4154%, the highest since 2019.

The sell -off, which began in recent months, has gathered time in recent seasons after Fed Chair Jerome Powell signaled the possibility of a larger -than -usual increase. As a result, the yen-sensitive yen climbed to six-year lows of 121.41 for the dollar on Wednesday.

“The move above the yields increased over the past two weeks is the biggest culmination of the global financial crisis and while the moves are in the two main sources of things. and we see it now, ”said NatWest Markets’ rate strategist Jan Nevruzi.

“Sometimes the market will probably start to price as the economy crashes, even if the Fed starts some sort of 50 bp hikes.”

Meanwhile, investors are impressed by the strength of the U.S. economy – despite the heads of war and economic expansion – and are relying on large businesses with good cash flows to hold their own. down.

“Great technology is doing well, with increasing revenue and the ability to control costs,” said George Boubouras at K2 Asset Management in Melbourne.

Tech behemoths Tencent and me Alibaba (NYSE 🙂 and major food supplier Meituan led the way in technology by more than 3%.

Holdings in Asia were held under pressure on Wednesday despite a slight decline in sales volumes. Australian ten -year yields rose 3.5 bps to 2.776%, Japan’s 10 -year yields closed at 0.222%, close to testing the Bank of Japan’s 0.25%cap.

In financial markets, analysts see little hope for a reversal of the yen’s value as the policy gap between Japan and the rest of the world widens and prices rise. high energy to the rest of the country’s trade.

The yen gained 6% in one week against the Australian currency, which has benefited from rising prices for Australian consumers.

The softer American currency helped the highest against the green since last November, with the Aussie hitting $ 0.7477 and the kiwi $ 0.6973.

The euro closed at $ 1.1031.

Oil continued to be at higher levels, with futures gaining 0.5% at $ 116.13 a barrel and rising 0.6% to $ 107.23.

The cups have always been supported by supply ideas.

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