Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

GLOBAL MARKETS-Asia shares look to China data as global economic recovery hopes underpin world shares

Published 16/04/2021, 11:50 am
© Reuters.
EUR/USD
-
USD/JPY
-
US500
-
JP225
-
MS
-
LCO
-
CL
-
IXIC
-
MIAPJ0000PUS
-
MIWD00000PUS
-

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

* Global asset performance http://tmsnrt.rs/2yaDPgn

* World FX rates http://tmsnrt.rs/2egbfVh

By Hideyuki Sano

TOKYO, April 16 (Reuters) - Asian shares were little changed on Friday ahead of a raft of Chinese economic data, while world stocks on the whole flew at a record level, fuelled by strong U.S. economic data that may herald a solid recovery ahead.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS were little changed while Japan's Nikkei .N225 ticked up 0.2%.

China will release a series of economic data later in the day, including its first-quarter GDP.

MSCI's broadest gauge of world stocks .MIWD00000PUS stood flat after 0.89 percent gains the previous day to a record high.

"U.S. economic data released yesterday was all strong, confirming the U.S. economy is firmly on a recovery track," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley (NYSE:MS) Securities.

Retail sales rebounded 9.8% in March, the largest increase since May 2020, in a gain that pushed the level of sales 17.1% above its pre-pandemic level to a record high. brightening economic prospects were underscored by other data, including first-time claims for unemployment benefits tumbling last week to the lowest level since March 2020.

Despite strong data, U.S. bond yields dropped, in part driven by Japanese buying, as they have began a new financial year this month.

The 10-year U.S. Treasuries yield dropped to 1.529%, a five-week low, on Thursday and last stood at 1.566% US10YT=TWEB , off its 14-month high of 1.776% set at the end of March.

"The market has already fully priced in an U.S. economic recovery in the near term. And if the Federal Reserve will keep interest rates on hold for the next two to three years, no doubt the carry of U.S. bonds would be very attractive compared with Japanese or euro zone bonds," said Chotaro Morita, chief fixed income strategist at SMBC Nikko Securities.

The fall in long-term bond yields benefited stocks, and particularly tech shares, given the idea that their historically expensive valuations can be justified because investors would have no choice but to buy shares to make up for low returns from bonds.

On Wall Street, the S&P 500 .SPX advanced 1.11% while the tech-heavy Nasdaq Composite .IXIC added 1.31%, nearing its record peak set in February.

In the currency market, lower U.S. yields were a drag on the U.S. dollar.

The euro stood at $1.1965 EUR= , having hit a six-week high of $1.19935 overnight while the U.S. currency slipped to a three-week low of 108.61 yen JPY= .

Oil prices held firm after hitting a four-week highs on Thursday following positive U.S. economic data and higher demand forecasts from the International Energy Agency (IEA) and OPEC.

Brent futures LCOc1 stood flat at $66.93 per barrel, while U.S. crude CLc1 was also little changed at $63.42 per barrel, both on course for their first substantial weekly gains in six.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates YTD

http://tmsnrt.rs/2egbfVh Global asset performance

http://tmsnrt.rs/2yaDPgn

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Gerry Doyle)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.