ASIAN STOCKS GAIN, YUAN RISES
Asian shares and US stock futures rose as renewed hopes for a new round of U.S. stimulus drew money into equities from government debt, Stanley White and Jessica DiNapoli reported for Reuters.
European equities looked set to follow. Euro 50 futures were up 0.25%, German DAX futures rose 0.28%, and FTSE futures gained 0.18%. US stock futures rose 0.71%.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.51%, while Tokyo shares gained 0.42%. Australian stocks .AXJO edged up by 0.09%, but shares in China fell 0.33%.
The yuan surged to the strongest level against the US dollar in more than two years on growing optimism about China's economy and speculation that a victory for US Democrat presidential candidate Joe Biden next month will lead to better Sino-US ties. Benchmark U.S. Treasury yields hit a four-month high and the yield curve steepened on expectations for more U.S. fiscal spending, but some investors remain cautious about the chances of a deal before the US presidential election on Nov. 3. “More stimulus means stocks rise and yields rise,” said Junichi Ishikawa, senior foreign exchange strategist at IG Securities in Tokyo.