Asian stocks recover on firmer futures, retreat in US yields

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Asian stocks were set for a strong open on Tuesday, helped mostly by global recovery prospects and the passage of a US$1.9 U.S. trillion stimulus ...

SYDNEY: Asian stocks recovered from earlier losses on Tuesday, lifted by firmer U.S. equity futures and central bank comments aimed at soothing fears about rising bond yields and inflation.Japan's Nikkei rallied 1.02per cent on Tuesday afternoon, while MSCI's broadest index of Asia-Pacific shares outside Japan was 0.10per cent higher.

"The chance of our seeing more inflation in the economy is meaningfully increased by the monetary policy actions and the fiscal policy actions that we're seeing around the world," Goldman Sachs Chief Executive Officer David Solomon told a conference in Sydney via webcast. Australian shares tracked overnight gains on Wall Street with the main S&P/ASX 200 index climbing as much as 1.04per cent on Tuesday. However, Australian tech stocks slid for the sixth straight session in line with their U.S. peers.

On Wall Street, the Dow advanced overnight while the Nasdaq shed over 2per cent, marking a more than 10per cent fall since its Feb. 12 closing high and confirming a correction in the index's value. U.S. Treasury yields have been advancing as investors price in higher inflation and more upbeat prospects for the U.S. economy as it emerges from the coronavirus pandemic.

 

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