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Risk-on stance greets asia after yellen remarks: markets wrap
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US central bank Chair Janet Yellen
(Bloomberg/File )
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new-found enthusiasm for riskier assets greeted Asian traders, with stocks climbing and the yen weakening after Janet Yellen said she stands ready to raise interest rates if the American economy strengthens as the central bank anticipates. Treasuries slumped.
Japan’s Topix index gained 1.2 percent after the yen retreated by the most since November, while Australian equities advanced. The yield on 10-year Treasury notes rose the most in a month, while the dollar remained firm after Yellen said the economy is “close” to the central bank’s objectives and she’s confident it will continue to improve. Shares of Netflix Inc. surged 8 percent after domestic and international growth topped estimates at the online TV provider. The S&P 500 closed higher, within 0.2 percent of its all-time high.
Investor focus was diverted away from politics as data showing rising consumer prices in the U.S. added to signs of strengthening inflation in the U.K. and the eurozone, underpinning confidence in economic growth. The comments came a day after concerns about Trump’s policies and the implications of Brexit drove investors to haven assets.
(Read also: Low inflation, strong exports help Indonesia anticipate fed rate hikes)
Read our Markets Live blog here.
Here are the main movers across markets.
Yields on 10-year Treasuries climbed 10 basis points to 2.42 percent on Wednesday, the biggest advance since Dec. 14.
Japan’s Topix index rose 1.3 percent as of 9:40 a.m. in Tokyo and Australia’s S&P/ASX 200 Index gained 0.4 percent. Hang Seng futures climbed 0.1 percent. The S&P 500 rose 0.2 percent on Wednesday.
The Bloomberg Dollar Spot Index rose 0.1 percent after surging 1.1 percent Wednesday, the most in a month.
The yen held at 114.77 per dollar after a 1.8 percent slump on Wednesday.
The Bloomberg Commodity Index halted a five-day rally, retreating 0.6 percent.
The Mexican peso and the loonie tumbled after Trump’s commerce pick said renegotiating Nafta will be a priority.
West Texas Intermediate crude slumped 2.7 percent on Wednesday, the most in a week.
Gold lost 1.1 percent, snapping a seven-day winning streak that was the longest since November. (dan)
