Asian shares rebound ahead of Fed’s Powell’s testimony

12.07.2021 - Korneychuk Evgeniya
Asian shares rebound ahead of Fed’s Powell’s testimony

Asian shares experienced a relief rally on Monday as Wall Street saw record highs and China eased up policies. These developments helped soothe apprehensions on global growth, although several possible pitfalls remain looming ahead of the week.

In the United States, data on inflation could potentially cause worries ahead of Federal Reserve Chair Jerome Powell’s testimony on Wednesday and Thursday, where markets are more reactive to any talk of early tapering.

 China’s figures on economic growth, trade, retail sales, and industrial output had been released amid apprehensions that these could underwhelm in light of the unexpected easing in policy the previous week.

In the meantime, investors are satisfied that the previous week’s bearishness had been turned around in New York, providing a boost to Wall Street and bonds’ bullish run.

On Monday, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.9%, recovering from the previous week’s 2.3% dip.

In Japan, Nikkei rebounded 2.3% while South Korea gained 0.9%.

Going over to China, blue chips climbed up 1.7% while Nasdaq and S&P 500 futures moved very little since their recovery on Friday.

Yields on US 10-year notes held steady at 1.362% after stooping down to 1.25% on Friday.

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