Asian stocks advanced, boost by optimism about the health of the US economy and speculation that stimulus will finally kick-start growth in China.
Equity benchmarks gained across the region and US 10-year yields rose to hover just shy of the key 4% threshold, as investors trimmed bets on big Federal Reserve interest-rate cuts.
Asian currencies weakened against the dollar, with Indonesia’s rupiah falling for a sixth day. Bank Indonesia said it stood ready to intervene to support the exchange rate.
The yen gained against the dollar. Trading is being shaped by signs of resilience in the world’s largest economy after employers added the most US jobs in six months in September.
Wagers on a “no landing” scenario — where US growth momentum remains intact and inflation reignites — stand to boost the greenback while triggering a drop in haven assets.
A gauge of Chinese stocks in Hong Kong jumped to the highest level in more than two years before mainland markets reopen Tuesday after a week-long holiday.
“In the short term, sentiment could overshoot but people will go back to fundamentals,” said Raymond Ma, Invesco’s chief investment officer for Hong Kong and Mainland China.
