FRIDAY, March 29, 2024
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Markets wrap: Asia to extend global stock rally on stimulus hope

Markets wrap: Asia to extend global stock rally on stimulus hope

Asian stocks looked set to extend a global equity rally after an emergency U.S. spending bill to combat the impact of the coronavirus added to signs of support from policymakers. Treasuries and the yen retreated.


Futures rose in Hong Kong, Japan and Australia, with regional shares set for a fourth day of gains. The S&P 500 index surged more than 4% after Congress authorized nearly $8 billion for virus prevention. The Bank of Canada joined this week's wave of global central bank stimulus and speculation grew that governments will provide more help as the outbreak claimed more lives. Joe Biden's surprise surge in Tuesday's presidential primaries added to bullish sentiment.

In a sign investors see more U.S. stimulus coming, shorter-dated Treasury yields declined as 10-year ones advanced, steepening the curve. Australian bonds opened lower and gold slipped. The yuan strengthened, erasing all losses since the coronavirus outbreak.

"At the moment the market takes this as credible enough, that is to say there is some recovery coming ahead as a result of the current action," said Ben Emons, managing director of global macro strategy at Medley Global Advisors.

As risk assets recover, traders remain on edge amid a rise in virus cases around the world. The S&P 500 has surged about 6% this week, a rebound that began late Friday when the Federal Reserve pledged support. It remains almost 8% below last month's all-time high.

Elsewhere, oil fluctuated amid a split between Saudi Arabia and Russia over whether deeper production cuts are required to offset the demand hit from the coronavirus epidemic.

These are the main moves in markets:

- - -

- The S&P 500 index advanced 4.2%.

- Futures on Japan's Nikkei 225 added 1.4%.

- Hang Seng futures earlier rose 0.7%.

- Futures on Australia's S&P/ASX 200 index gained 1.8%.

- - -

- The Bloomberg Dollar Spot index increased 0.2%.

- The euro decreased 0.4% to $1.1133.

- The yen fell 0.4% to 107.51 per dollar.

- The offshore yuan rose 0.4% to 6.9226 per dollar.

- - -

- The yield on 10-year Treasuries rose four basis points to 1.04%.

- The yield on two-year Treasuries fell two basis points to 0.68%.

- Australia's 10-year yield rose eight basis points to 0.8%.

- - -

- West Texas Intermediate crude held at $47.18 a barrel.

- Gold fell 0.3% to $1,636.33 an ounce.

 

 

 

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