Stocks gain on US recovery prospects but dollar pauses for breath

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SINGAPORE: Asia's stock markets rose on Tuesday (Apr 6) as another batch of strong US economic data bolstered the global outlook, while currency ...

SINGAPORE: Asia's stock markets rose on Tuesday as another batch of strong US economic data bolstered the global outlook, while currency and bond markets paused for breath after a month of rapid gains in the dollar and in US Treasury yields.

"Yields haven't budged much and so tech stocks have outperformed," he said. In Asia, chipmakers pushed Taiwan's benchmark index up 1 per cent to a record peak and broad gains lifted Australia's ASX 200 to a seven-week high.AdvertisementEuropean markets, which have been shut since Thursday's close, were also poised for gains with DAX futures up 1.2 per cent, EuroSTOXX 50 futures 1 per cent higher and FTSE futures up 0.8 per cent. S&P 500 futures were steady.

The dollar crept a fraction higher on the yen on Tuesday to 110.25 and was broadly steady elsewhere. The Australian dollar held at US$0.7647 ahead of a Reserve Bank of Australia policy decision due at 0430 GMT.The pullback in yields and the greenback follows major moves upward over the first quarter, with an 83 basis point rise in 10-year yields the biggest quarterly gain in a dozen years and a 3.6 per cent rise in the dollar index the sharpest since 2018.

Fed Funds markets have priced in a full rate hike by the end of 2022 while eurodollar markets have it priced by December.

 

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