TOKYO/NEW YORK, RAW – Asian stocks have risen on Tuesday, tracking an advance by Wall Street’s main indexes to record highs, as investors looked to key central bank meetings this week, starting with the US Federal Reserve.
An index of the region’s share markets excluding Japan strengthened 0.7 per cent, led by a 1.2 per cent jump in Australia’s benchmark S&P/ASX 200 index.
Japan’s Nikkei 225 gained 0.6 per cent to just below the closely watched 30,000 mark, while the broader Topix added 0.5 per cent.
China’s blue chip CSI 300 index climbed 0.7 per cent, and Hong Kong’s Hang Seng gained 0.7 per cent.
On Monday, the S&P 500 and Dow Jones Industrial Average both soared on gains in travel stocks as mass vaccinations in the United States and congressional approval of a $US1.9 trillion ($A2.5 trillion) aid bill fuelled investor optimism.
E-mini futures for the S&P 500 edged up 0.06 per cent.
Investors are focused on the Fed’s two-day policy meeting, which will conclude on Wednesday, as bond yields have surged this year on investors betting central bankers will need to raise rates sooner than they have so far signalled to contain inflation. Fed policymakers are expected to forecast that the US economy will grow in 2021 by the fastest rate in decades.
The Bank of England also meets this week on Thursday, while the Bank of Japan wraps up a two-day gathering on Friday.
“Markets are likely to be in a holding pattern ahead of this heavy central bank-laden week,” write analysts at TD Securities.
On Wall Street, the Dow Jones Industrial Average rose 174.82 points, or 0.53 per cent, to 32,953.46, the S&P 500 gained 25.6 points, or 0.65 per cent, to 3,968.94 and the Nasdaq Composite added 139.84 points, or 1.05 per cent, to 13,459.71.
Airline shares rose as the companies pointed to concrete signs of an industry recovery as vaccine rollouts help spur leisure bookings.
Germany, France and Italy hit pause on AstraZeneca COVID-19 shots after several countries reported possible serious side effects.
The development will be watched in Australia, where the vaccine is also administered.
The pan-European STOXX 600 index was flat on Monday, after touching its highest level since February 2020.
Longer-term US Treasury yields slipped further on Tuesday, as the market looked ahead to the Fed meeting and the latest government debt auctions.
The benchmark 10-year yield, which reached a more than one-year high of 1.642 per cent last week, was back at 1.595 per cent
Rising inflation expectations could prompt the Federal Open Market Committee to signal it will start raising rates sooner than expected.
In currencies, the US dollar held small gains from overnight in muted price action ahead of the central bank meetings.
The greenback was largely flat at 109.165 yen, after rising as high as 109.365 on Monday for the first time since June.
The euro was little changed at $US1.1932 ($A1.5398)0, languishing for an eighth session below the closely watched $US1.20 ($A1.55) level.
Bitcoin continued its slide from a record high of $US61,781.83 ($A79,730.65) reached on Saturday, last trading 3 per cent weaker on the day at around $US53,915 ($A69,578).
US West Texas Intermediate crude for April changed hands at $US64.79 ($A83.61) a barrel, down 60 cents. Brent crude futures for May stood at $US68.21 ($A88.03) a barrel, losing 67 cents.