© Reuters. FILE PHOTO: A man walks past a stock market quotation at a broker in Tokyo
By Tom Westbrook and Alwyn Scott
SINGAPORE / NEW YORK (Reuters) – Shares rose Thursday after the worst quarter of the year as higher government bond yields supported the dollar as investors analyzed the details of a US government spending plan of $ 2 trillion and Hoping for strong employment data later the week.
The broadest MSCI index for stocks in the Asia-Pacific region outside Japan rose 0.6% after falling slightly on Wednesday. rose 1.3% as a survey found big manufacturers sentiment returned to pre-pandemic levels.
Ten-year US Treasuries, which last quarter suffered their biggest sell-off in a dozen years, remained under pressure and yields rose to 1.753% while the dollar was just below a year-long high of the yen at 110.685.
Following a $ 1.9 trillion pandemic relief package, President Joe Biden on Wednesday unveiled a comprehensive plan to restore the world's largest economy, including spending on roads, railways, broadband, clean energy and semiconductor manufacturing.
"We will likely see more purchasing power from the incentives than from the taxes (accompanying)," said Jun Bei Liu, portfolio manager at Tribeca Investment Partners in Sydney.
"And if anything, the higher taxes are likely to limit future inflationary pressures and, in some strange way, could even help bond yields stabilize where they are."
It's not clear if the plan could clear Congress as it was icily received by Republicans. However, the breadth of proposed spending helped bring investors back to technology stocks overnight, and the Nasdaq rose 1.5%. ()
Biden's plan calls for a $ 174 billion investment in electric vehicles, and Tesla (NASDAQ 🙂 led in profits by a 5% jump, while Apple (NASDAQ 🙂 by 1.9% and Microsoft (NASDAQ 🙂 by 1 , 7%.
"We're just seeing some momentum in the people picking up on some of the lagging sectors, which is growth and which will flow into Asia."
US markets had finished the quarter in gains – up 5.8% and the Dow Jones up 7.8% over the three months – but the 4.1% quarterly increase in world stocks was the slowest on record Recovery from last March's meltdown.
This has led to growing concerns about hiccups in the vaccine rollout and a new wave of coronavirus infections, particularly in Europe, where France ordered a third national lockdown on Wednesday.
The euro was punished as the pandemic resurrected on the continent and stood at $ 1.1729 in Asia as investors waited for Friday's U.S. jobs data to assess the growing gap in the Atlantic rallies.
There are other signs of mood fragility and increased risk as well. The flop listing for grocery supplier Deliveroo, which fell nearly a third on its debut in London, is a far cry from the frenzy that debuted U.S. new economy names Airbnb and DoorDash last year.
Investors are concerned about the consequences of the fire sale of holdings by ailing asset manager Archegos Capital, who walled up the affected stocks and shares in some of Archegos' brokers. Credit Suisse (SIX 🙂 and Nomura.
Australia's fastest gains in home prices in more than three decades last month also point to some of the side effects of ultra-light monetary policy that may put pressure on central banks to cut support earlier than planned.
Risk-sensitive currencies and commodities reflected caution, with the Australian and New Zealand dollars each falling about 0.2% on Thursday. Crude oil prices contributed to losses overnight, with futures gaining 0.5% to $ 63.03 a barrel and 0.6% to $ 59.52. (OR)
Gold, which pays no income, was largely unchanged after jumping above $ 1,700 overnight. Even so, it suffered its worst quarter since late 2016 due to the surge in US yields.