From Gina Lee
Investing.com – Asia Pacific stocks rose Tuesday morning and global stocks continued to rally on Tuesday. However, bonds continued to decline as optimism mounts over the adoption of COVID-19 vaccines.
Japan was up 1.48% to 11:09 p.m. (3:09 p.m. GMT) and South Korea was up 0.12%.
In Australia they increased by 0.28%.
The Hong Kong index rose 1.55%.
Chinese markets are closed for a holiday and US markets have been closed overnight due to a holiday. The UK led overnight gains in European stocks that were still glowing after a milestone in vaccinating 15 million Britons against COVID-19 on February 14.
Ten-year government bond yields rose to 1.24%, their highest level in nearly a year, followed by Australian equivalents.
Global equities will see gains for the twelfth year in a row, with the yield curve for government bonds hitting its steepest in over five years. Investor bets on improved economic growth and favorable inflation are rising thanks to continued government spending and global COVID-19 vaccine launches.
Some investors were cautious despite the optimism.
“Returns are far from harming growth or the outlook for the stock market. Profits are increasing and mundane issues drive returns. However, complacency is dangerous, ”warned Chris Iggo, chief investment officer of Axa Investment Managers for core investments, in a note.
Other investors also made strong recommendations to keep an eye on bond yields.
"If the yields of US bonds continue to rise, this could unsettle the stocks," Sumitomo Mitsui (NYSE :), chief strategist at DS Asset Management, Masahiro Ichikawa, told Reuters.
On the central bank front, the (RBA) released the minutes of its February meeting earlier in the day. The minutes showed that the RBA believes that raising inflation to more comfortable levels will require significant and sustained tightening of the labor market, a difficult task that is likely to take years to achieve. The RBA also acknowledged wage growth had been sluggish for years before COVID-19 imposed its own wage restrictions.
The US Federal Reserve will also release the minutes of the January Federal Open Market Committee meeting on Wednesday. Payments are also due on the same day.
The European Union finance ministers will meet later in the day to discuss the current economic situation and prospects for the region. The region and are due to be released later in the day.
Meanwhile, oil prices rose to a 13-month high. A severe blizzard in the US resulted in a freezing condition and increased electricity demand, which in turn threatened oil production in the state of Texas.
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