By Kevin Buckland
TOKYO (Reuters) – Shares in Asia rose on Monday whereas Treasuries and the greenback saved their composure, as traders took their lead from Wall Road’s Friday rally, shrugging off a Moody’s downgrade to the U.S. credit score outlook.
Tech shares stood out, as they’d within the U.S. on the finish of final week, after the calming of long-term Treasury yields because the begin of this month boosted the outlook for borrowing-dependent development shares.
U.S. 10-year Treasury yields had been steady at round 4.646%, consolidating across the high of their vary since Nov. 3, when softer labour market information spurred bets for a much less hawkish Federal Reserve. The yield had been as excessive as 4.935% on Nov. 1.
The U.S. greenback index hovered beneath its post-payrolls-report excessive of 106.01, reached on Friday, final buying and selling little modified round 105.80.
Japan’s Nikkei rose 0.46%, with chip-related shares offering the most important enhance. Taiwan’s tech-heavy fairness benchmark rallied 1.17%.
Hong Kong’s Grasp Seng gained 0.49% amid an outperformance in tech shares.
Nonetheless, mainland Chinese language blue chips had been barely decrease, and Australia’s resource-heavy benchmark slipped 0.13%.
Nomura Securities strategist Naka Matsuzawa mentioned equities are doubtless near a peak.
“Up till now the market has been taking unhealthy financial information as excellent news, as a result of that might imply a pause in Fed charge hikes,” he mentioned.
“However now, the Treasury market has already priced in a pause, so there’s not a lot room for Treasury yields to fall additional,” eradicating a assist for the inventory market, he added. “Briefly, I do not assume the inventory market rally goes to proceed.”
The market paid little consideration to a Moody’s announcement late on Friday that it had lowered its outlook on the U.S. credit standing to “damaging” from “steady”.
The main focus as a substitute stays on upcoming financial information, with readings of U.S. shopper costs and retail gross sales due Tuesday and Wednesday, respectively.
In the meantime, crude oil costs eased on Monday as demand worries trumped provide considerations, amid slowing development in the US and China. [O/R]
Brent crude futures for January had been down 35 cents, or 0.4%, at $81.08 a barrel, whereas the U.S. West Texas Intermediate (WTI) crude futures for December had been at $76.82, down 35 cents, or 0.5%.
Each benchmarks gained almost 2% on Friday as Iraq voiced assist for oil cuts by OPEC+.
(Reporting by Kevin Buckland)
