ASIAN STOCKS RALLY AS U.S. SHARES HIT RECORD
Asian stocks climbed Friday after US shares reached a record on optimism about a stimulus-fueled economic recovery. Trading should be light with holidays across the region, Cormac Mullen reported for Bloomberg News on April 2, 2021.
Japan and South Korea advanced on below-average volume following the S&P 500’s first close above 4,000, as investors weighed President Joe Biden’s $2.25 trillion spending plan and signs of faster expansion. Technology shares led the gains, though value stocks also joined the rally. U.S. equity futures rose.
Treasuries rebounded after the worst quarter in decades with 10-year yields falling back below 1.7%. The dollar retreated. Oil climbed after the OPEC+ alliance agreed to boost output gradually. In Asia, markets including Australia, Hong Kong, Singapore and India are shut for holidays, as are many worldwide.
Manufacturing growth roared ahead in March, and government job-market data due Friday are expected to show the first in a series of outsized monthly increases.
Biden’s plan to rebuild infrastructure has added to the growth outlook, though questions remain about how much can actually be delivered.
S&P 500 futures were up 0.2% as of 9:15 a.m. in Tokyo. The S&P 500 Index increased 1.2% Thursday. Japan’s Topix index climbed 1%. South Korea’s Kospi index advanced 1%. The yen was at 110.55 per dollar, up 0.1%. The offshore yuan was flat at 6.5737 per dollar. The Bloomberg Dollar Spot Index fell 0.3% Thursday.
The euro traded little changed at $1.1779. The yield on 10-year Treasuries fell seven basis points to 1.67% on Thursday. West Texas Intermediate crude rose 3.9% to $61.45 a barrel on Thursday. Gold was at $1,729.40 an ounce.
WEEKLY FEATURE : BONNER DYTOC SHOWS THE WAY IN STOCK PLAY