On Friday, Asian stocks rose after expectations that Beijing and Washington are having progressive talks on trade. Meanwhile, bond yields traded higher following concerns about the economic outlook.
The broadest index of MSCI of Asia-Pacific shares except for Japan rose 0.5 percent. In Japan, the Nikkei 225 gained 1 percent. On the other hand, the Shanghai Composite climbed more than 2 percent.
The markets were cheerful after the U.S. officials reported China has made trade proposals on a wide range of issues including on forced technology transfer. Gains on Wall Street also bolstered optimism in investors. On Thursday, the Nasdaq Composite rose 0.34 percent and the S&P 500 climbed 0.3 percent. The S&P 500 added 12.3 percent for this quarter so far instead of the recent turbulence. If sustained, it would mark the finest quarterly performance of the index since 2009.
On Thursday, the 10-year bond yield moved up to 2.403 percent after recovering from 2.352, its 15-
month low. It emerged after a relentless fall subsequent to the Fed’s dovish tone previous week ignited concerns regarding the economic outlook.
Moreover, investors were worried when the yield on the 10-year note dropped below the 3-month
Treasury yield. The curve inversion indicated as a sign of a U.S. recession. According to recent data, the GDP growth in the fourth quarter is lower than the expected one. The GDP growth revised to 2.2 percent from the previous reading of 2.6 percent.
In the currency market, the British pound gained 0.2 percent to $1.3069 after shedding over 1 percent in the previous session. The yen was at 110.785 against the dollar as weakened a bit from Monday’s high of 109.70. Meanwhile, the euro was flat at $1.1228 after edging up from its three-week low of $1.1214.