Asia Stocks, U.S. Futures Edge Higher, Yields Ease: Markets Wrap

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(Bloomberg) — Asia stocks and U.S. futures climbed Monday as investors weighed an unexpectedly strong U.S. jobs report and the sustainability of the latest selloff in bonds.

A regional gauge edged higher and Japan gained, while markets were closed for the Easter break in China, Hong Kong and Australia. S&P 500 futures extended gains from Friday on a payrolls report showing U.S. employers added the most jobs in seven months. Treasuries clawed back some losses at the start of Asia’s shortened trading session, with the 10-year yield easing back to 1.70%.

Oil futures eased in early trade after OPEC+ decided to boost production and Saudi Arabia raised prices for shipments to Asia. The U.S. dollar was little changed against major currencies.

Investors are watching the progress of debate over U.S. President Joe Biden’s $2.25 trillion infrastructure proposal, as Republicans expressed guarded support for a more limited plan. The response so far in bond markets has been muted, with inflation concerns easing amid doubts over the viability of more-generous spending, even as central banks remain committed to keeping interest rates lower for longer.

“We are not doubting the market’s expectations of strong U.S. economic momentum,” said Eric Robertsen, chief strategist at Standard Chartered Bank, in a client note. “But the market has also priced in much of the good news up front.”

Traders are also tuned to the possible market impact of a meeting between U.S. President Biden’s top national security and economic advisers on April 12, with semiconductor and auto companies to discuss the global shortage of microprocessors, according to people familiar with the matter.

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Some key events to watch this week:

The Reserve Bank of Australia delivers its policy decision Tuesday.U.S. Federal Reserve publishes minutes from its March meeting on Wednesday.Japan publishes its balance of payments numbers Thursday.China’s consumer and producer prices data are due Friday.Fed Chairman Jerome Powell takes part in an IMF panel on the global economy Friday.

These are some of the main moves in financial markets:

Stocks

S&P 500 futures were up 0.5% as of 9:30 a.m. Tokyo time. They rose 0.4% Friday.Japan’s Topix Index edged up 0.2%.Korea’s Kospi Index was down 0.2%.

Currencies

The Bloomberg Dollar Spot Index was up 0.1%.The yen was steady at 110.68 per dollar.The euro was flat at $1.1764.The Australian dollar was up 0.1% at 76.15 U.S. cents

Bonds

The yield on the 10-year Treasury note slipped to 1.70%.

Commodities

West Texas Intermediate crude fell 0.3% to $61.30 a barrel.Gold edged down to $1,727 an ounce.

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