TOKYO : Stocks in Asia rose on Monday while Treasuries and the dollar kept their composure, as investors took their lead from Wall Street’s Friday rally, shrugging off a Moody’s downgrade to the U.S. credit outlook.
Tech stocks stood out, as they had in the U.S. at the end of last week, after the calming of long-term Treasury yields since the start of this month boosted the outlook for borrowing-dependent growth shares.
U.S. 10-year Treasury yields were stable at around 4.646 per cent, consolidating around the top of their range since Nov. 3, when softer labour market data spurred bets for a less hawkish Federal Reserve. The yield had been as high as 4.935 per cent on Nov. 1.
The U.S. dollar index hovered below its post-payrolls-report high of 106.01, reached on Friday, last trading little changed around 105.80.
Hong Kong’s Hang Seng gained 0.49 per cent amid an outperformance in tech shares.
However, mainland Chinese blue chips were slightly lower, and Australia’s resource-heavy benchmark slipped 0.13 per cent.
Nomura Securities strategist Naka Matsuzawa said equities are likely close to a peak. “Up until now the market has been taking bad economic news as good news, because that would mean a pause in Fed rate hikes,” he said. Source: reuters
