Asia Stocks Gain as Powell Calms Inflation Nerves: Markets Wrap
Added 02-24-21 08:04:02pm EST - “(Bloomberg) -- Asian stocks and U.S. futures rose Thursday after a rebound in the S&P 500 on encouraging vaccine news and soothing comments on inflation from Federal Reserve Chairman Jerome Powell. Treasury yields were steady.A gauge…” - News.yahoo.com
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(Bloomberg) -- Asian stocks and U.S. futures rose Thursday after a rebound in the S&P 500 on encouraging vaccine news and soothing comments on inflation from Federal Reserve Chairman Jerome Powell. Treasury yields were steady.
A gauge of Asian equities climbed with Japan and South Korea outperforming. Australian stocks also advanced. The S&P 500 Index rose despite weakness in tech shares, with gains the banking sectors sending an industry gauge to its highest since 2007. Small caps rallied more than 2% after U.S. regulators said Johnson & Johnson’s Covid-19 vaccine is safe and effective.
The yield on Australia’s three-year bond dipped after the central bank said it would buy A$3 billion ($2.4 billion) of the securities, stepping into the market for the second time this week as yields spiked above its target. The 10-year yield surged back to its highest since March, and the U.S. benchmark steadied around 1.38% after a jump of as much as 10 basis points.
Crude oil remains close to a one-year peak as traders see supply tightening with demand returning. Copper touched the highest since 2011.
Powell pushed back on inflation concerns in his second day of Congressional testimony, and Fed Vice Chair Richard Clarida said he sees the central bank keeping its current pace of bond purchases in place for the rest of the year. The equity market is focusing on the benefits to corporate earnings of a post-pandemic surge in economic activity, while mindful that higher inflation and interest rates could dent the appeal of stocks.
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