Sydney — Asian shares rallied on Monday as some semblance of calm returned to bond markets after last week’s wild ride, while progress in the huge US stimulus package underpinned optimism about the global economy and sent oil prices higher.
MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 1%, after shedding 3.7% last Friday.Nasdaq futures bounced 1.2% and S&P 500 futures 0.8%. Euro Stoxx 50 futures and FTSE futures both rose 1.0%. “Market participants remain nervous over the prospect of higher inflation as economies look to reopen aided by vaccine rollouts, high levels of savings along with solid fiscal and monetary support.”
BofA’s US economist Michelle Meyer lifted her forecast for economic growth to 6.5% for this year and 5% next, due to the likelihood of the larger stimulus package, better news on the virus front and encouraging data. On Monday, the euro was steady at $1.2083, compared with last week’s peak of $1.2242, while the dollar held near a six-month top on the yen at 106.60.