Amnesty Int'l halts India operations, citing gov't reprisals    Kenya extends COVID curfew for 2 months but reduces hours    Merkel says German coronavirus infections could hit 19,200 a day: Source    US, Greece call for peaceful resolution of maritime disputes in east Mediterranean    Live score: Fulham v Aston Villa (English Premier League)    Tottenham deserve more respect, says Mourinho    Saudi Arabia to hold virtual G20 summit on Nov 21-22    Liverpool coach Klopp not anticipating any further arrivals    Morocco faces down COVID spread with tough rules    Ethiopian PM says Addis Ababa has 'no intention of harming' Egypt, Sudan with GERD    Egypt's Assiut, Sohag int'l airports receive first Saudi Airlines flights since resumption of air traffic    Egypt's central banks cuts interest rates by 50 bps    'It's important to show our ingenuity': Nigerian collector promotes local artistic heritage amidst Black Lives Matter    EgyptAir receives 11th Airbus A220-300 from Canada    3 policemen, 4 prisoners killed in Cairo jailbreak attempt    Last-minute bids    Wust El Balad band gives a concert at the Fountain theatre    Khan Almaghraby gallery group exhibition is a must go    Egyptian insurance companies' premiums 9.6% up in five months    Egypt's President Sisi names new head of anti-corruption watchdog    Egypt's offers 18 bln pounds T-bills on Sunday    EgyptAir offering discounts for some international flights    Egypt records 212 new coronavirus cases, 14 deaths on Saturday    Egypt to require PCR coronavirus tests for airport travelers    Egypt sends 125 tonnes of glass by sea to Beirut    Legend Messi officially wants to leave Barcelona, hands transfer request    Global smartphone sales drop 20% in Q2, yet Apple's iPhone sales steady    Sisi: Egypt keen on establishing development projects with Iraq, Jordan    Egyptian megastar Amr Diab releases new hit music video    Making of Harry Potter will be available for fans at new park in Tokyo    Egypt's Senate elections official results to be announced Wednesday    Netflix Egypt is bringing megastar Amr Diab back with a new original    Egypt reopens Rafah border crossing for first time since April    Egypt's senate elections 2020 trending on social media in few days    African Champions League final will be played on Oct. 16-17, CAF says    No room to delay Egyptian Premier League games – EFA's board member    The Facebook Preacher's Search for Fame, and Egypt's Economy    Egypt calls on UNSC to address oil spill risks off Yemen coast    Egypt economically strong in face of COVID-19, reforms ongoing: International Cooperation Minister    Arafa Holding reports $144,000 COVID-19-related losses in April    Egypt's efforts in Libya to activate free will of Libyan people: Al-Sisi    Hyksos campaigns were internal takeover, not foreign invaders: study    COVID-19 affects Egypt sporting clubs    COVID-19 will soon turn to seasonal like swine flu: Presidential Health Advisor    ‘Egypt's Support' coalition convenes to discuss its Senate election list    Robbery attempt leads to discovery of Ptolemaic monuments in Qena    Flouting international guidance, Ethiopia unilaterally starts filling its Nile dam    Zaha speaks out after online racial abuse    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

Chinese markets climb as Treasury yields bounce higher
Published in Amwal Al Ghad on 19 - 08 - 2019

Asian markets rose on Monday as U.S. Treasury yields bounced higher after plunging last week.
Shares in mainland China led gains in the region as they surged on the day, with the Shanghai composite adding 2.1 percent to 2,883.10 and the Shenzhen component gaining 2.96 percent to 9,328.97. The Shenzhen composite also advanced 3.048 percent to 1,571.97.
On Saturday, the People's Bank of China said it will improve the mechanism used to establish the loan prime rate from this month, allowing it to "use market-based reform methods to help lower real lending rates. " That comes as Beijing attempts to prop up a slowing economy that has been hit by its ongoing trade war with Washington.
Hong Kong's Hang Seng index also jumped 2.4 percent, as life insurer AIA's stock surged 3.22 percent.
Shares of airline Cathay Pacific rose 1.32 percent, following the resignation of its CEO last Friday "in view of recent events. " The firm has come under political pressure from Beijing following the discovery that two of its pilots were involved in ongoing protests in Hong Kong that have rocked the city for weeks.
In Japan, the Nikkei 225 rose 0.71 percent to close at 20,563.16 as shares of convenience store operator FamilyMart surged 8.73 percent, while the Topix added 0.61 percent to finish its trading day at 1,494.33.
Meanwhile, South Korea's Kospi advanced 0.66 percent to close at 1,939.90, while the S&P/ASX 200 in Australia gained 0.97 percent to end its trading day at 6,467.40.
Overall, the MSCI Asia ex-Japan index rose 1.24 percent.
US bond watch
Treasury yields rebounded last Friday, touching a high after reports that Germany would boost spending by issuing more debt.
The yield on the benchmark 10-year Treasury note was last at 1.5792 percent, while the rate on the 30-year Treasury bond was at 2.0641 percent.
"For now hopes of German fiscal stimulus is tied to the economic outlook. Nevertheless, hopes of fiscal stimulus will be important to watch with a broad-based global expansion of fiscal policy still being one way to scare a bond market with yields at extreme lows," Tapas Strickland, an economist at National Australia Bank, wrote in a note.
The bond market flashed a signal last Wednesday that is normally interpreted as a sign a recession is on the horizon, as the yield on the 10-year Treasury note briefly broke below the rate for the 2-year.
The U.S. 30-year Treasury yield dropped to a record low last Thursday, while the yield on the benchmark 10-year notes dipped to a three-year low, as investors sought out safe-haven assets.
"Our expectation is really that despite the yield curve inversion, 2019 and most likely 2020 are actually going to be safe from a U.S. recession," Stefan Hofer, managing director and chief investment strategist at LGT Bank Asia, told CNBC's "Capital Connection" on Monday.
"I would not be too surprised at all to see the United States unveil a mini fiscal stimulus next year just to sort of keep us above water and sort of have that next U.S. recession happen in 2021 or a little bit later," Hofer said.
Currencies and oil
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 98.16 after rising from levels below 97.5 last week.
The Japanese yen traded at 106.37 against the dollar following volatile movements in the previous week that saw it touching highs below 105.5. The Australian dollar changed hands at $0.6782 after seeing lows below $0.675 last week.
Oil prices rose in the morning of Asian trading hours. The international benchmark Brent crude futures contract added 1.53 percent to $59.54 per barrel, and U.S. crude futures gained 1.49 percent to $55.69 per barrel.
Source: CNBC

Clic here to read the story from its source.