Asian shares rebounded on increasing risk appetite, putting a regional gauge on course for a sixth consecutive week of gains, and Treasuries steadied as concerns about US fiscal policy eased.
The MSCI Asia Pacific Index advanced 0.6% while futures for the S&P 500 rose 0.1%. Contracts for European stocks also gained.
The yield on the 30-year US Treasury held at 5.04%. The Bloomberg Dollar Spot Index dropped 0.2%, extending this week’s loss to 1.2%. That’s the biggest move in six weeks.
Bond markets this week have reflected investors’ concerns about the fiscal health of the US economy, which was amplified after Moody’s Ratings downgraded the nation’s top credit rating last week.
That broke a relative calm in financial markets after a month of turmoil from US President Donald Trump’s tariff blitz. US stocks had even rallied to within striking distance of a bull market.
“The bond market is speaking, equity markets aren’t really listening at this point,” Thomas Taw, head of Asia Pacific investment strategy at BlackRock Asset Management, said in a Bloomberg Television interview. “
