Asian stocks started the week higher after their U.S. peers chalked fresh records and China’s central bank moved to boost liquidity.
reasury yields stabilized after jumping Friday. Shares in Japan outperformed and Hong Kong also rose. Australia advanced despite a prolonged lockdown in the largest city, Sydney, as virus cases continue to rise. U.S. futures fluctuated.
The S&P 500 finished last week at all-time highs as investors continued to bet that global growth remains on track despite new Covid-19 variants. Chinese assets found support after the central bank cut the amount of cash most banks must hold in reserve to buttress economic growth. Stocks gained, with the liquidity-sensitive ChiNext increasing as much as 4.3% to the highest since June 2015.
Chinese dollar bonds climbed as investment-grade spreads tightened. The offshore yuan edged higher. Treasuries snapped an eight-session rally Friday that saw 10-year yields tumble as low as 1.25% in a volatile week.
They will remain in focus amid new supply coming to the market this week, as well as key U.S. inflation data and Federal Reserve Chair Jerome Powell’s semi-annual appearance before Congress. The dollar inched up against major peers, while the Australian dollar underperformed amid Sydney’s curbs.
