Asian shares retreat, yields advance on stimulus hopes
Asian shares eased from high grounds on Monday, while Treasury yields were seen at 10-month highs. Investors’ mixed sentiment could be attributed to a global reflation trade as the United States plans on unveiling a trillion-worth of stimulus package this week.
After touching a record peak last week, MSCI’s broadest index of Asia-Pacific shares outside Japan extended gains with a 0.2% increase. Japan’s benchmark index Nikkei was inactive after it hit a 30-year high on Friday. Meanwhile, South Korean shares performed flatly as Chinese blue chips firmed 0.7%.
Treasury yields, on the other hand, were seen at their highest since March. This followed after Friday’s subdued employment report boosted hopes that the U.S. government will implement larger fiscal stimulus. More so, President-elect Joe Biden is set to announce new relief bills this week.