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NEW YORK, March 11 ― Asian stocks were set to open slightly higher, following Wall Street's momentum, after a report on US consumer prices calmed concerns about inflation, helping steer the Dow Jones Industrial Average to a record close.
Japan's Nikkei 225 futures added 0.02 per cent. Hong Kong's Hang Seng index futures rose 0.03 per cent.
Australia's S&P/ASX 200 index gained 0.12 per cent in early trading. E-mini futures for the S&P 500 rose 0.24 per cent.
“I do think we'll see good support for Asian markets today across the region,” said Michael McCarthy, chief markets strategist at CMC Markets. “The reflation trade is back on. We saw bonds and stocks rallying together and a slight easing in the US dollar, which also indicates improving sentiment.”
The US Labour Department said its consumer price index rose 0.4 per cent in February, in line with expectations, after a 0.3 per cent increase in January. Core CPI, which excludes volatile food and energy components, edged up 0.1 per cent, just shy of the 0.2 per cent estimate.
While analysts largely expect a hike in inflation as vaccine rollouts lead to a reopening of the economy, worries persist that additional stimulus in the form of a US$1.9 trillion (RM7.8 trillion) coronavirus relief package set to be signed by US President Joe Biden could lead to an overheating of the economy.
The House of Representatives gave final approval yesterday to the bill, one of the largest economic stimulus measures in US history.
US Treasury yields slid yesterday after an auction of benchmark 10-year notes that showed tepid demand with lower-than-average bid-to-cover ratio.
Benchmark 10-year notes last fell 2/32 in price to yield 1.5265 per cent, from 1.52 per cent late yesterday.
Investors will now eye an auction of 30-year debt today, seeking to cover massive shorts. A weak seven-year auction in late February helped fuel inflation concerns and sent yields higher.
The fall in the 10-year yield after the auction wasn't enough to help the tech-heavy Nasdaq, which lagged both the Dow and the S&P 500 after its strong move on Tuesday, as investors stayed with names expected to benefit from the economic reopening like financials.
The Dow Jones Industrial Average rose 1.45 per cent to a record closing high, the S&P 500 gained 0.60 per cent and the Nasdaq Composite dropped 0.04 per cent.
Europe's main index hovered near pre-pandemic highs.
MSCI's gauge of stocks across the globe gained 0.09 per cent.
Gold erased earlier losses to hit a one-week high yesterday, as US Treasury yields eased.
Spot gold prices rose US$0.1234 or 0.01 per cent, to US$1,726.17 an ounce. US gold futures settled 0.3 per cent up at US$1,721.80.
The dollar moved lower following the economic data.
The dollar index fell 0.21 per cent, with the euro down 0.01 per cent to US$1.1924.
Oil prices resumed their climb after two days of declines, after the Energy Information Administration reported a bigger-than-expected storage build.
US crude futures settled at US$64.44 per barrel, up 43 cents or 0.67 per cent. Brent crude futures settled at US$67.90 per barrel, up 38 cents or 0.56 per cent. ― Reuters
Source: Malay Mail
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