Asian shares advance on earnings optimism, yen slips to four-year low | Malay Mail

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TOKYO, Oct 20 — Asian shares advanced and US long-dated bond yields edged up to a five-month high today on rising optimism about the global economy and corporate earnings while the yen slipped to a four-year low on the dollar. Japan’s Nikkei rose 0.8 per cent while MSCI’s broadest index of...

TOKYO, Oct 20 — Asian shares advanced and US long-dated bond yields edged up to a five-month high today on rising optimism about the global economy and corporate earnings while the yen slipped to a four-year low on the dollar.

In New York, the benchmark S&P 500 index gained 0.74 per cent to finish just 0.4 per cent below its early September record close while the CBOE market volatility index fell 0.6 point after earlier hitting 15.57, its lowest level since mid-August. The positive mood saw US bond yields rising further, with the 10-year US Treasuries yield climbing to 1.662 per cent, a high last seen in May.

“The Fed is likely to become more hawkish, probably tweaking its language on its assessment that inflation will be transient. While the Fed will maintain tapering is not linked to a future rate hike, the market will likely try to price in rate hikes and flatten the yield curve,” said Naokazu Koshimizu, senior strategist at Nomura Securities.

 

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