Asian stocks rebound from tumultuous week on positive US lead
Asian stocks rose Monday, taking a break from the global rout that has gripped investors since late January after US stocks gained on Friday and S&P 500 Index futures extended gains in Asia trading hours. Japan is closed for a holiday today.
Equities are rebounding after falling as much as 10 percent from their record high on Jan. 29 as investors pared positions amid rising US bond yields which shows they remain wary of further increases in global interest rates and inflation from current levels.
The MSCI Asia Pacific excluding Japan Index advanced 1 percent to 559.90 as of 11:28 a.m. in Hong Kong after its biggest weekly fall since Sept. 2011. Equity benchmarks in Hong Kong Korea and Taiwan led the gains.
“Markets have gone from overbought to oversold,” said Joshua Crabb, head of Asian equities at Old Mutual Global Investors. There is no reason for it to breakdown as fundamentals remain strong, he added.
Traders are keeping a close eye on Chinese stocks in the holiday-shortened week as they swing between gains and losses, after they led the recent sell-off.
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