Stocks Increase as a Tailwind from Lower US Yields- Asia Market Wrap

US and European stock futures gained alongside Asian markets as a drop in Treasury yields increased the appeal of owning stocks. Traders are looking for any additional information on Trump’s administration.

MSCI’s Asian market index rose by up to 1.2%, with Taiwan, India, and Indonesia posting the largest increases. The so-called Trump trade, which had boosted the Dollar and pushed up US yields, has lost momentum, at least temporarily.

The increases in US stock futures signal that American shares can continue their climb after the S&P 500 and Nasdaq 100 both closed higher on Monday. The Nasdaq 100 excelled in US trading, with Tesla up 5.6% on reports that Trump’s transition team is looking to soften the government framework for fully self-driving vehicles.

The Yen rose against all of its Group 10 peers, reversing some of its recent weakness. Japan’s Finance Minister Kato stated that the government’s stance on adopting suitable steps to combat excessive currency movements has not changed.

The Australian Dollar remained at a one-week high after central bank minutes revealed policymakers believed their current settings were reasonable to try to reduce core inflation, which is said to be too high.