SYDNEY (Reuters) - Shanghai shares led Asia higher on Tuesday as China touted fiscal action to support the world’s second largest economy, while stellar results from internet giant Alphabet underpinned the tech sector generally.
A man looks at an electronic stock quotation board outside a brokerage in Tokyo, Japan February 9, 2018. REUTERS/Toru Hanai
Global bonds remained under pressure on speculation the Bank of Japan may soon trim its massive stimulus. In China, government bond yields jumped and the offshore yuan hit a one-year low after China’s cabinet said it would pursue a more vigorous fiscal policy and as traders bet on further easing in monetary conditions.
Shanghai blue chips rose 1.5 percent to a one-month high, while MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.6 percent.
The better mood helped Japan’s Nikkei edge up 0.5 percent, even as a disappointing reading on factory activity suggested the threat of a trade war was starting to bite.
E-Mini futures for the S&P 500 firmed 0.2 percent, and European bourses looked set to start higher
Tech stocks got a boost from the parent of Google which jumped 3.6 percent after hours to hit a record high, valuing the group at a cool $870 billion.
That made up for an otherwise dull Monday on Wall Street where the Dow ended down 0.06 percent, while the S&P 500 gained 0.18 percent and the Nasdaq 0.28 percent.
WHO WILL BUY THESE BONDS?
Bond bulls were still smarting from speculation that the Bank of Japan is close to announcing measures to scale back its massive monetary stimulus, a risk that lifted long-term borrowing costs globally.
Markets were worried that Japanese investors would have less incentive to hunt offshore for yield, said ANZ economist Felicity
