Asian stocks advance on Monday

Asian shares advanced broadly on Monday, tracking technology-led gains on Wall Street. Meanwhile, the yen hovered near record lows against the euro and Swiss franc, as higher interest rates intensified pressure on Japanese government debt.

MSCI’s broadest index of Asia Pacific shares outside Japan rose 0.8 per cent. South Korea’s market surged 1.7 per cent on optimism over AI-related earnings, Chinese blue chips gained 0.8 per cent, and Singapore’s benchmark climbed 1 per cent to a record high. European equity futures were subdued, with Euro STOXX 50 and FTSE futures down 0.1 per cent.

Risk appetite remained firm, with S&P 500 futures up 0.3 per cent and Nasdaq futures rising 0.5 per cent, after the S&P 500 advanced about nine-tenths per cent and the Nasdaq climbed 1.3 per cent in the previous session. Japan’s Nikkei jumped 1.9 per cent, extending Friday’s rebound as the weaker yen boosted export prospects.

The currency slide followed the Bank of Japan’s rate increase to a 30-year high of 0.75 percent, which pushed 10-year government bond yields up another eight basis points to 2.10 percent, their highest level since 1999.

The yen touched fresh record lows at 184.90 per euro and 198.08 per Swiss franc, while the dollar steadied near 157.29, with investors wary of provoking intervention from Tokyo. Japanese officials warned against one-way moves and signalled readiness to act against excessive currency weakness.

TD Securities said global equity funds recorded record weekly inflows of $98 billion last week, led by US equities, while bond inflows slowed for a fourth consecutive week. US 10 year yields edged up two basis points to 4.169 per cent.

Attribution: Reuters