Most Asian stocks rose Monday after the outcome of Japan’s election bolstered expectations for fiscal stimulus and as all-time highs for U.S. shares encouraged some investor optimism.
The yen weakened. Equities jumped more than 1% in Japan, where Prime Minister Fumio Kishida’s Liberal Democratic Party defied forecasts by preserving its outright majority.
Stocks fluctuated in China amid data signaling economic weakness due to power shortages, surging commodity prices and Covid curbs. U.S. and European futures advanced following Friday records for the S&P 500 and Nasdaq 100.
U.S. Treasuries dipped and the gap between 5-year and 30-yields shrank. Short-term yields from Canada to Australia have jumped on bets that monetary authorities will have to hike interest rates to curb inflation.
Traders are awaiting central bank meetings in the U.S., U.K. and Australia this week. The Federal Reserve is expected to scale back its bond-purchase program. A gauge of the dollar ticked up. In Australia, sovereign debt pared an epic Friday collapse. The rout was triggered by the central bank’s failure to defend a bond-yield target, spurring speculation of a looming policy shift.[BLOOMBERG]
