Asia stocks cautiously mixed, dollar tries to bounce

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SYDNEY: Asian share markets turned mixed on Monday as U.S. lawmakers struggled to hammer out a new stimulus plan amid a global surge of new coronaviru...

Asian share markets turned mixed on Monday as U.S. lawmakers struggled to hammer out a new stimulus plan amid a global surge of new coronavirus cases, though a squeeze on crowded short positions gave the dollar a rare bounce.

Investors were nervous at the lack of a new stimulus package in the United States with White House Chief of Staff Mark Meadows not optimistic on reaching agreement soon on a deal. "Amid improvements in business sentiment, signals are emerging that the initial boost from pent-up demand is fading and consumer confidence is slipping lower," wrote economists at Barclays in a note.

The uncertainty saw benchmark 10-year Treasury yields hit their lowest since March at 0.52% last week and were currently just a fraction higher at 0.55%. The dollar was last at $1.1758 per euro, with the single currency having gained 4.8% in July to stretch as far as $1.1908. Against a basket of currencies, the dollar stood at 93.566 having touched its lowest since May 2018 on Friday at 92.538.

The decline in the dollar combined with super-low real bond yields has been a boon for gold, which boasted its biggest monthly gain since February 2016.

 

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