Asia Stocks Track U.S. Gains; Treasuries Pare Drop: Markets Wrap

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(Bloomberg) — Asian stocks and U.S. equity futures rose Thursday as the global recovery and President Joe Biden’s infrastructure plan helped traders look past lockdowns from resurgent Covid-19 cases. Treasuries trimmed losses.

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A gauge of Asia-Pacific shares was set for its first climb in three days, with Hong Kong leading gains, after data signaled a pick-up in regional manufacturing. S&P 500, Nasdaq 100 and European futures edged higher. The tech-heavy U.S. index rallied overnight, outperforming the S&P 500.

Ten-year Treasury yields dipped after the worst quarterly performance since 1980 for the Bloomberg Barclays index tracking U.S. government bonds. Oil gained ahead of a high-stakes OPEC+ meeting on supply curbs. A U.S. dollar gauge ticked higher. Australia’s currency fell to the lowest point this year.

Chipmakers were in focus after Taiwan Semiconductor Manufacturing Co. said it plans to spend a staggering $100 billion over three years to expand capacity.

© Bloomberg Benchmark index suffers worst quarterly return since 1980

The U.S. administration’s $2.25 trillion infrastructure plan outlined Wednesday appeared to boost sentiment less than some expected. The goal of funding it with higher corporate taxes and the prospect of resistance to the overall initiative in Congress tempered the response. In east Asia, data showed the world’s manufacturing heartland is booming as the recovery from the pandemic spurs global trade.

“There is still some room for recovery in stocks that will benefit from the economic recovery and the reopening trade,” Ania Aldrich, investment principal at Cambiar Investors LLC, said on Bloomberg TV. “There’s still a lot of growth that has to come and that’s not necessarily reflected in earnings yet.”

Read More: Navigating the Recovery Trade Is Getting a Whole Lot Trickier

Investors remain focused on inflation risk as central banks reassert their commitment to low interest rates. Traders for now are looking past worsening virus trends, such as lockdowns in France and Canada’s Ontario province.

Some key events to watch this week:

OPEC+ meets to discuss production levels for May on Thursday.U.S. employment report for March on Friday.Good Friday starts the Easter weekend in countries including the U.S., U.K., France, Germany, Australia and Canada.

These are some of the main moves in financial markets:

Stocks

S&P 500 futures rose 0.1% as of 6:50 a.m. in London. The S&P 500 Index increased 0.4% and the Nasdaq 100 rose 1.5%.Japan’s Topix Index added 0.2%.Australia’s S&P/ASX 200 Index was up 0.6%.Hong Kong’s Hang Seng Index rose 1.1%.South Korea’s Kospi Index gained 0.6%.China’s Shanghai Composite Index climbed 0.3%.Euro Stoxx 50 futures rose 0.2%.

Currencies

The yen traded at 110.71 per dollar.The offshore yuan was at 6.5820 per dollar, down 0.3%.The Bloomberg Dollar Spot Index added 0.2%.The euro traded at $1.1720.

Bonds

The yield on 10-year Treasuries dipped two basis points to 1.72%.Australia’s 10-year bond yield rose six basis points to 1.84%.

Commodities

West Texas Intermediate crude rose 0.8% to $59.63 a barrel.Gold was up 0.4% at $1,714.761 an ounce.

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