Asia: Markets follow US lead with gains
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ASIAN markets posted modest gains in early Thursday trade, rebounding from previous losses after a strong lead from Wall Street.
The US markets finished Wednesday higher, snapping a three-day losing streak, with the tech-rich Nasdaq closing up 1.4 per cent.
The Dow Jones Industrial Average and the S&P 500 also closed higher, while European indices ended little changed.
When trading kicked off in Asia, Tokyo was up by more than one per cent, and Hong Kong was up by just over 0.3 per cent.
Singapore and Seoul were also up, while markets in mainland China were closed for a week-long holiday.
The 10-year US Treasury note, which hit a 16-year peak on Tuesday, had retreated following a lacklustre US hiring report.
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The note is a closely watched proxy for interest rates, and the recent surge comes amid fears the Federal Reserve will keep interest rates elevated for longer.
“We are going all in on long-duration, high-grade bonds,” Adam Coons, chief portfolio manager at Winthrop Capital Management, told Bloomberg Television.
“We are really at an inflection point where interest rates in the US just can’t go up that much higher.”
The easing of Treasury yields was helped by economic data that prompted traders to scale back forecasts for Federal Reserve tightening this year.
All eyes will be on Friday’s release of employment figures, with the overall health of the economy factoring in Fed rate decisions. AFP
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