Asian stocks keep pace with the recovery of “Wall Street” amid the height of bonds

Asian stocks have opened their dealings at an altitude, tracing the largest wave of rise in Wall Street for more than two weeks, driven by the recovery of US consumer confidence and a global rise in bond prices.

The shares regional index increased by 0.5% with gains in Japan and Korea, and the returns of US Treasury bonds settled for 30 years, after registering the largest daily decline since late March, amid indications that Japan may modify its debt sales after the market turmoil. The price of oil also increased before the “OPEC+” committee meeting.

Investors are awaiting the results of “Invidia” business on Wednesday, to see if the current momentum is continuing. A recovery broke on Tuesday what is known towards “selling America” ​​in the markets, which was more clear in the performance of the dollar after US President Donald Trump sparked the war of fees and pushed towards lowering taxes, which raised concerns about the budget deficit in America.

More optimism

Tony Rodriguez, head of the fixed income strategy at Novin Rodriguez, told Bloomberg TV: “There is more optimism now. The market is definitely quieter.” He added: “Nevertheless, we are entering into a very fragile range due to the presence of a lot of uncertainty.”

Investors in long -term bonds, who were subjected to great pressure recently, got some relief on Tuesday with a global height wave in the bonds that led to a significant decrease in returns. The strong demand for a two -year -old US bond -selling auction also contributed to 69 billion dollars in strengthening gains in the United States.

Fears over the ability of governments to cover the old budgets, such as the debts of advanced markets in recent days, has pushed the returns of long -term American bonds towards levels that have not been registered since 2007.

In Japan, the focus will go to the release of major bonds today. This comes at a time when long -term borrowing costs are also increasing in other major economies, including America, and the returns of Japanese bonds, especially in the very long -term category, are increasing, while the Bank of Japan reducing its purchases of bonds, while life insurance companies fail to bridge this deficiency.

Inappropriate time

Great Strategy for interest rates in “SBC Niko Securities” Mickey Dean said, “The high -long bond sector has shown some strength since last weekend,” adding, “Unless basic concerns about more of the higher returns caused by the imbalances of supply and demand and the expectations of financial expansion, the time is not currently appropriate to live or enter into parallel deals for returns.”

The focus will also go to the profits of “Invidia”, the vital electronic chips maker of the accelerated infrastructure in the field of artificial intelligence. The company will issue its profit report on Wednesday evening, which will give investors a vision about whether this huge flow of spending can continue.

Serne Ling, the administrative director of Union Banker Braveh Ling, said, “The recent comments from giant technology companies such as Microsoft, Amazon and Google indicate that the demand for Invidia chips will remain very strong in the upcoming chapters.”

American consumer confidence

In the results of the business of Asian companies, Xiaomi announced revenues that exceeded expectations during the first quarter of the year, while continuing the power of expanding its presence in the electric car market in China and strengthening the basic smart phone business.

On the other hand, the shares of the company “BDD Holdings”, which owns the “Timo” application, fell in America’s trading after its sales and quarterly profits came without expectations, highlighting the impact of commercial tensions between Beijing and Washington on its business.

In America, consumer confidence has been sharply recovered in May of its lowest level in about five years, in light of improving expectations about the economy and the labor market after the commercial truce.

Despite the widespread anxiety between consumers and companies alike, the public economy and the labor market specifically are still largely coherent. Economists expect that the effects of customs duties will likely take months before they are fully reflected on the economy, while consumers are still largely protected from the direct impact thanks to the absorption of retailers of costs.

Step Economists in Santander US Capital Markets Stephen Stanley said, “Talking about customs duties has not yet ended, as we have seen during the past days with the threat of 50% fees on the European Union, but it seems that the financial markets are ready to move forward, and these data indicate that families may go in the same direction as well.”

In another context, the US government is expected to obtain what is known as the “Golden Arrow” at the United Stets Steel company as a condition for approval of the Japanese “Nippon Steel” acquisition of the American company, according to people familiar with the matter.