Tokyo — Asian shares dipped on Thursday as tight liquidity conditions in China curbed buying for now, though improving corporate earnings, expectations of large US stimulus and subsiding retail frenzy all supported risk sentiment.
Asian shares were hampered by tight liquidity in China after the country’s short-term interest rates rose again, reversing falls in the previous two days. Markets on the whole have calmed significantly in the past few days with measure of investors’ expectations on market volatilities such as the Cboe Volatility index slipping back to the lowest levels in over a week.
While it is unclear how much compromise the Democrats are willing to make with Republicans who are calling for a smaller package, many investors expect an additional spending of at least $1-trillion. The benchmark 10-year yield rose 1.8 basis points to 1.149%, edging near a 10-month high of 1.187% marked in January.