Asian stocks cheer easy money clues even as Treasury yields probe bulls

Asian equities stay on the front-foot as global central bankers battle reflation risks.
Fed, RBNZ, BOK were the latest to favor further easy monetary policies.
Aussie, Kiwi data couldn’t gain major attention but vaccine optimism, stimulus hopes did matter.
Bond yields stay on the front foot near multi-month top, KOSPI becomes regional winner on anticipated microchip demands.

Anil Panchal FXStreet

Asian shares take the bids on Thursday as central banks from the US, New Zealand and South Korea recently shrugged off reflation risks while also favoring extended monetary easing. On the same line were chatters concerning fiscal stimulus from America and the UK Chancellor’s readiness to offer a budget that will help the economy boom after the coronavirus (COVID-19).

Amid these plays, MSCI’s index of Asia-Pacific shares outside Japan rises 1.73% whereas Japan’s Nikkei is up nearly 2.0% by press time. New Zealand’s NZX 50 bucks the trend with a 0.75% intraday loss as the RBNZ accepts Finance Ministry’s push to consider housing and government policies for decision-making.

Australia’s ASX 200 gains 0.83% as upbeat Q4 Private Capital Expenditure (CAPEX) data joins vaccine news suggesting strong results of the Pfizer and Moderna jabs. Additionally, stocks in China and Hong Kong are nearly 2.0% up even as traders discuss China’s economic recovery and the future of the People’s Bank of China’s (PBOC) policies. In doing so, the risk barometers ignore the latest warning sign from Beijing that didn’t like American Navy crossing the Taiwan Strait on February 24.

South Korea’s KOSPI was the regional winner as BOK’s Lee joined the chorus of Fed, RBNZ and other key central bankers to back the easy monetary policies. Also supporting the sentiment in South Korea could be US President Joe Biden’s executive order for microchips.

Indonesia’s IDX Composite and India’s BSE Sensex are among other beneficiaries of the market optimism while commodities cheered the US dollar declines.

Looking forward, a preliminary reading of the US Q4 GDP, expected 4.1% versus 4.0% prior, will be the key to watch as a strong figure may back the relfation fears and probe equity bulls.

Read: US January Durable Goods and Q4 GDP Preview: Consumers worry but they spend

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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