Asian shares, yuan advance on stimulus-driven optimism
Asian share markets and U.S. stock futures advanced on Wednesday. This followed after U.S. stimulus talks bolstered market sentiment, prompting investors to resort to equities and withdraw from government debt.
MSCI’s broadest index of Asia-Pacific shares outside Japan recorded a 0.56% gain. Australian shares hiked 0.1%, while Chinese shares jumped 0.07%. Shares in Tokyo gained 0.4% as U.S. stock futures tallied a 0.44% jump.
The yuan placed above the dollar, hitting its biggest jump in more than two years. The increase was backed by growing hopes about China’s economy and expectations for a stronger Sino-U.S. relationship should U.S. Democrat presidential candidate Joe Biden win the election next month.
Benchmark U.S. Treasury yields had seen a four-month peak. In addition to this, the yield curve had steepened as investors anticipate larger U.S. fiscal spending. However, caution lurks as a deal remains tentative before the U.S. presidential election on Nov. 3.