Asian stocks rose Tuesday, tracking a U.S. equity rebound, as concerns over the Federal Reserve’s hawkish tilt were tempered by the prospect that policy tightening would be gradual. Treasuries steadied after a retreat.
Japanese shares outperformed, helping a gauge of Asia-Pacific stocks to the biggest climb in about three weeks. S&P 500 contracts edged up after the index rallied overnight, aided by a revival of the value trade in sectors like energy and financials. European equity futures were in the green.
Yields on longer-dated Treasuries rebounded in the U.S. session Monday, even as short-end rates remained firmly anchored. That undid some of the curve-flattening that swept across markets after Fed officials last week accelerated their expected pace of policy tightening. Brent oil hit $75 a barrel for the first time in more than two years on signs of a rapidly tightening market.
The dollar trimmed some of its slide from U.S. hours. Bitcoin sank closer to $30,000 after China intensified its cryptocurrency clampdown. Investors are parsing comments from Fed speakers for clues about the outlook for emergency stimulus as the recovery from the pandemic stokes price pressures.
