Stocks shrug off rates risk as US consumers spend

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SINGAPORE : Bonds fell and the dollar rose on Thursday as roaring U.S. retail sales had investors reckoning on interest rates staying higher for longer to temper demand, though stock markets were focused on the bright side for earnings and climbed a little.The S&P 500 rose 0.3 per cent overnight. MSCI's b

SINGAPORE : Bonds fell and the dollar rose on Thursday as roaring U.S. retail sales had investors reckoning on interest rates staying higher for longer to temper demand, though stock markets were focused on the bright side for earnings and climbed a little.

U.S. retail sales increased by the most in nearly two years in January - up 3 per cent, against expectations of a 1.8 per cent rise - as Americans bought cars, clothes and furniture despite higher borrowing costs. "A lot of the data has been quite positive, so people might be thinking: 'Where's the recession?'" said Jason Wong, a senior market strategist a BNZ in Wellington.

Two-year Treasury yields, which also track short-term interest rate expectations, hit their highest since November at 4.703 per cent overnight. The ten-year yield hit 3.828 per cent on Thursday.Around Asia, South Korea's Kospi led gains with a 1.4 per cent rise. The Hang Seng rose 0.7 per cent and mainland Chinese stocks were flat.

The U.S. dollar index is eying a third weekly gain in a row - the longest streak since September, when the index was galloping towards a 20-year high.

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