By Kevin Buckland, Herbert Lash
Japan bucked the trend, with the Nikkei falling 0.4% as rising coronavirus cases raised doubts about an economic resuming with 100 days to go till Tokyo is scheduled to host the Olympics.
The U.S. consumer price index rose 0.6%, the biggest boost because August 2012, as increasing vaccinations and fiscal stimulus released pent-up need. However the information is unlikely to alter Federal Reserve Chair Jerome Powells view that greater inflation in coming months will be transitory.
Powell is set up to speak later in the day at the Economic Club of Washington.
” The market clearly braced for greater CPI readings,” Westpac strategists composed in a customer note.
They said Tuesdays result was “clearly being translated within the context of the Feds dedication to look through transitory inflation impulses.”
Editing by Ana Nicolaci da Costa.
Earnings will be a concentrate on Wednesday, with JPMorgan Chase & & Co. and Goldman Sachs Group Inc among the companies reporting.
The U.S. dollar reduced in addition to Treasury yields, slipping to a three-week low to major peers.
Gold, a standard inflation hedge, extended its rise from the most affordable in more than a week to trade around $1,745 in the area market.
Bitcoin hit a record above $63,860, extending its 2021 rally to brand-new heights on the day Coinbase shares are due to list in the United States.
In oil markets, Brent crude futures increased 40 cents to $64.07 a barrel. U.S. crude futures added 37 cents to$ 60.55 a barrel.
MSCIs broadest index of Asia-Pacific shares outside Japan gained 0.6%. Hong Kongs Hang Seng rallied 1.3%, while Chinas blue-chip index jumped 0.7%.
MSCIs gauge of equity efficiency in 50 countries advanced 0.15%, extending its all-time peak.
The decline in bond yields raised U.S. tech stocks overnight, including Apple Inc, Microsoft Corp and Amazon.com Inc, the top three holdings of the worldwide criteria.
The S&P 500 got 0.33% as it also set intra-day and record closing highs, while the Nasdaq Composite added 1.05%. The Dow Jones Industrial Average fell 0.2%.
Johnson & & Johnsons shares slid 1.34% after U.S. federal health agencies suggested pausing the rollout of its COVID-19 vaccine for at least a few days, after 6 females developed unusual blood clots. Problems to vaccination rollouts have raised issues about the worldwide economic healing.
* Chinese stocks lead gains in Asian equities
* Bond yield retreat boosts tech shares
* Bitcoin strikes record high, dollar weakens
TOKYO, April 14 (Reuters) – Global equity markets increased to a fresh record high on Wednesday as bond yields relieved after information revealed U.S. inflation was not rising extremely.
Many Asia-Pacific share indexes followed Wall Street higher, with Hong Kongs Hang Seng leading gains in the area, while benchmark U.S. Treasury yields continued their decline, marking a fresh three-week low.
For bond markets, the concern is whether the benchmark yield can break listed below 1.6% from as low as 1.611% on Wednesday, they wrote.
” That has actually been an important technical level, which if broken could see a quick relocate to 1.5%.”.
The 10-year U.S. Treasury yield had risen from the start of the year to a 14-month high of 1.776% on March 30 on bets that huge financial stimulus would speed up a U.S. healing, stoking faster inflation than Fed policymakers prepare for.
But yields have alleviated this month, in part owing to the Feds insistence that labour market slack will prevent the economy from overheating.
A spate of strong auction outcomes, including of 30-year bonds on Tuesday, has likewise helped to tame yields.