Asian Stocks Rise as the Dollar Gains and Japan Rally – Asia Market Wrap

Asian shares rose following a Wall Street surge, with Japanese equities rising as fears about the BoJ’s plan to sell off its vast exchange-traded fund holdings lessened.

MSCI’s regional stock index rose 0.2%, while the Nikkei-225 index jumped as high as 1.6%. The Yen dropped against the Dollar, which usually benefits exporters. Indian IT firms fell as traders assessed the impact of the steep hike in H-1B visa application fees.

The Dollar index rose 0.1%, extending its gains for the fourth day. Treasuries slipped lower, with the 10-year yield climbing 1 bp to 4.14%. Oil surged 0.6% following a small decrease previous week, while silver reached its highest level since 2011. Equity-index futures for the US and Europe were scarcely moved.

Global equities are trading at record highs, and with earnings season just around the corner, rising expectations for corporate America’s profit growth predict the surge will continue. Sentiment also improved after Trump praised progress on China-related issues and announced that he would meet with Xi Jinping following a phone discussion between the two leaders.

In other political developments, Japan’s governing party leadership race began on Monday amid intense market monitoring, with the conclusion likely determining who would lead the country following PM Ishiba’s decision to stand down.