TOKYO: Japanese stocks climbed, and Asian bonds tracked a rebound in the US and Europe, amid prospects the American economy is not yet strong enough to withstand higher interest rates. New Zealand’s dollar retreated.
The Topix index added 0.7 per cent by 10.03am in Tokyo, helping the MSCI Asia Pacific Index up 0.1 per cent. Standard & Poor’s 500 Index futures lost 0.1 per cent after the gauge extended its record. Yields on 10-year debt from Japan to Australia fell at least three basis points as Treasury rates held two days of declines. The kiwi lost 0.5 per cent amid government plans to tighten tax rules on residential property. Crude oil traded in New York was below US$60 (RM213) a barrel.
Evidence of weakness in US retail sales to industrial output and consumer confidence has damped speculation over a revival in inflation, seen as a necessary requirement for the Federal Reserve to start raising borrowing costs from near zero. A pause in the global bond selloff stoked optimism the slump that erased more than US$400 billion from fixed-income markets has run its course. China reports on property prices Today, while Thailand updates on economic growth.
“Investors are likely to start the week in cautious mode as markets assimilate the impact of weaker than expected US data and wait on developments in the Greek debt saga,” Ric Spooner, chief market analyst in Sydney at CMC Markets, wrote in an e-mail to clients. “The first Fed rate hike now seems at least several months away. While this supports equity valuations, it also means that the outlook for world growth remains subdued.”
