Asian stocks make cautious gains after Wall Street surged as US yields fell By Reuters

© Reuters. FILE PHOTO: People stand in front of a screen displaying the Nikkei index outside a brokerage in Tokyo

(Reuters) – Asian stocks made early trading gains on Thursday after a mixed Wall Street session fueled by expectations of a U.S. stimulus package, even as political events in Washington culminated in the impeachment of President Donald Trump. US Treasury yields posted their first full session decline in 2021 after rising for six consecutive sessions as investors expected more spending from incoming US management. The benchmark had closed slightly. on the upside driven by rate-sensitive defensive sectors such as utilities and real estate, while economically sensitive cyclical sectors lagged. “There is this push-pull relationship between what happens in the bond market and the equity markets,” said Charlie Ripley, senior investment strategist at Allianz (DE 🙂 Investment Management. “Bond yields have risen on the prospect of higher stimulus spending and if yields continue to rise, there will be some pressure on equity markets.” Australia was up 0.21% in early trading, while Hong Kong futures were up 0.23%. Intel Corp (NASDAQ 🙂 was the biggest percentage winner on the S&P, advancing 7% after the chipmaker said it would replace CEO Bob Swan with VMware (NYSE 🙂 Inc CEO Pat Gelsinger, next month. The major Wall Street indices had hit record highs last week on expectations for a sizeable COVID-19 relief package, which President-elect Joe Biden will introduce Thursday. Following the assault on the US Capitol, the House of Representatives voted Wednesday to impeach Donald Trump, making him the first US president to be indicted twice. On Wall Street, it fell 0.03%, the S&P 500 gained 0.23% and 0.43% added. Several Federal Reserve officials rejected the idea of ​​the central bank reducing its asset purchases in the short term despite expectations of higher inflation. Yields are expected to resume, in part due to the effect of the Biden administration’s stimulus package, due to open next week. A $ 24 billion auction of 30-year bonds was well bid, pushing yields further down. Benchmark 10-year notes last rose 13/32 in price to yield 1.0951%, from 1.138% late Tuesday. The US dollar rebounded from nearly three-week lows on Wednesday, rising broadly in hopes of higher government spending. He was up 0.357%, with the euro down 0.42% to $ 1.2156. The Japanese yen weakened 0.11% against the dollar to 103.87 per dollar. Oil prices fell as the threat of lower demand from rising COVID-19 cases globally outweighed support for a larger-than-anticipated fall in inventories. US crude recently fell 0.6% to $ 52.89 a barrel and stood at $ 56.04, down 0.95% on the day. it fell 0.4% to $ 1,848.05 an ounce. Silver fell 1.38% to $ 25.22.

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