Reuters. During the outbreak of coronavirus disease (COVID-19) in Tokyo, a man wearing a protective face mask walks behind a screen showing a graph showing the average Nikkei stock average outside a brokerage.
By Hideyuki Sano
TOKYO (Reuters) – Global share prices soared as U.S. bond yields hovered near a 13-month high on Monday as investors claimed that the U.S. economic growth momentum accelerated after the U.S. signed a ના 1.9 trillion stimulus bill this week.
The risk of COVID-19 vaccination in the United States and some other countries has boosted the mood on risky assets, though investors remain wary of major central bank policy meetings over the weekend, including the US Federal Reserve.
Chief Investment Norihiro Fujito said the U.S. Now vaccinating three million people a day, President Biden now says all adults will be shot by May 1st. It can soon achieve herd immunity and economic normalization. Strategist at Mitsubishi UFJ (NYSE 🙂 Morgan Stanley (NYSE 🙂 Securities.
U.S. Futures rose 0.2% at the start of Asian trading, trading at a record high last week, while improving to 0.3%.
Mainland Chinese stocks accelerated lower trading trends, despite data showing rapid growth in land industrial production and increased retail sales.
MSCI’s broad index of Asia-Pacific shares outside Japan rose 0.2%, with Hong Kong gaining.
“Most market participants and policy makers are amazed at the pace of recovery. On our forecast, the US economy will reach CoVID-19 output levels by the current quarter,” said Chetan Ahya, global head of economics. Note.
“Fiscal policy is doing a lot more than fill the output hole. Transfers to households have already surpassed lost income in the recession. Once again gaining momentum, the labor market is booming.”
The U.S. House of Representatives gave final approval to the COVID-19 relief bill last week, giving Biden his first major victory in office.
Some investors speculate that part of the $ 1,400 direct payment in homes could find a way to reach the stock markets, as similar direct payments were made last year for coronavirus relief.
Investors also fear that 91. A trillion-dollar package, which is more than %% of the country’s GDP, could accelerate inflation – the loss of bonds, especially when their yields are too low.
Rising inflation expectations could signal the Federal Reserve to announce its latest economic forecasts at the end of a meeting of the Federal Open Market Committee (FOMC) on Wednesday.
“It is inevitable following financial stimulus packages
According to ANZ economists, the Fed’s GDP forecast will be revised, and some FOMC members think the rate will move to a higher level sooner than expected last December.
10-year-old U.S. Treasury yield stood at 1.628%, rising to 1.642% on Friday, from February last year.
After the excitement, the U.S. At the top of expectations of continued economic optimism and debt supply, uncertainty over whether the Fed will raise emergency regulatory easing in the so-called “supplementary leverage ratio” (SLR) added to the sense of uneasiness.
Higher US bond yields have seen the dollar rise against other major currencies.
The euro moved from last week’s high of 1 1.1990 to 1.1947 dollars while the dollar was stable at 109.12 yen, which is close to the nine-month high of 109.235 on Tuesday.
The British pound fell 0.25% to 39 1.3934.
A senior Indian government official said on Saturday that Delhi would propose legislation banning cryptocurrency, penalizing anyone in the country’s trade or even keeping such digital assets, after which it briefly fell to 74 11,7821 on Saturday. .
Oil prices were supported by optimism about recovery in demand as major oil producers recovered from cuts in production and the global economy recovered from an epidemic-driven recession.
The stock traded at 9 9.33 a barrel on the futures day, up 0.9% on the day.
