Asia stocks gain on firmer Wall Street, China hopes; U.S. yields elevated
By Shinichi Saoshiro TOKYO (Reuters) - Asian stocks rode higher on Wednesday thanks to strong U.S.
By Shinichi Saoshiro
TOKYO (Reuters) - Asian stocks rode higher on Wednesday thanks to strong U.S. corporate earnings and hopes China will boost fiscal support for its economy, while long-term U.S. yields hovered near six-week highs on speculation the Bank of Japan could be less accommodative.
MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> gained 0.17 percent.
The index extended gains from the previous day, when it was lifted after China said it will adopt a more vigorous fiscal policy to help tackle external uncertainties.
Australian stocks <.AXJO> dipped 0.1 percent, South Korea's KOSPI <.KS11> advanced 0.35 percent and Japan's Nikkei <.N225> rose 0.5 percent
Overnight on Wall Street, the S&P 500 <.SPX> closed at its highest level since Feb. 1 as Alphabet's
"Gains by U.S. shares are providing support for equities, as well as China's stimulus plan. Corporate earnings will continue to come out and these will be a key focal point for the markets, which also have to keep an eye on trade developments," said Soichiro Monji, senior economist at Daiwa SB Investments in Tokyo.
In currencies, the dollar index against a basket of six major currencies <.DXY> was little changed at 94.594, having edged up from a near two-week low of 94.207 plumbed at the start of the week on the back of higher U.S. Treasury yields.
The 10-year Treasury note yield
The yield had shot up on speculation the BOJ was edging closer to unwinding its aggressive monetary stimulus, following reports by Reuters and other media late last week that the central bank was holding preliminary discussions on possible changes to its monetary policy.
The euro was flat at $1.1684
The pound was up 0.05 percent at $1.3151
The Australian dollar was also buoyant, trading a shade higher at $0.7427
The Aussie, which if often used as liquid proxy for China plays, also benefited as prices of commodities such as industrial metals rose on Chinese stimulus hopes.
Copper on the London Metal Exchange (LME) traded at $6,270.50 per tonne
On Tuesday, LME zinc
Brent crude futures
(Editing by Shri Navaratnam)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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