Asian stocks rose, recouping their losses from last week’s rout, bolstered by an advance in Japanese shares.
US and European equity futures ticked higher ahead of American inflation data later Tuesday and Wednesday.
Japan’s equities gained after a holiday, as a weaker yen was seen providing support for exporters. MSCI’s Asia-Pacific gauge rose as much as 1%.
That erased losses from last week’s tumble, when a risk-off move sent indexes around the world plummeting and the VIX US volatility index above 65 at one point, compared with a lifetime average of around 19.5.
“The market’s reaction to last week’s VIX spike reflects a reassessment of positioning rather than just U.S. data points or yen carry unwinding,” said Billy Leung, an investment strategist at Global X Management in Sydney.
“However, it’s key to be cautious in reading short-term Asia movements, given signs of foreign outflows and low liquidity.”
