Stocks in Asia look set to round out two strong weeks on a high after U.S. equities climbed to fresh records and concerns surrounding trade tensions showed signs of easing. Treasury yields held near the highest level this year, while the dollar slipped.
Japan’s Topix index is on course for the best week in two years, while futures signaled gains when markets open in China and Hong Kong. Emerging-market assets continued to rally from recent lows. The sell-off in sovereign bonds has steadied in the past two days following this week’s rise above 3 percent for 10-year U.S.yields, something equity investors are taking in their stride amid optimism over earnings and economic growth.
With a Federal Reserve interest-rate hike baked in to investor expectations for next week, the solid U.S. economy, coupled with some clarity over the next developments in the trade war, have helped boost sentiment in markets this week. Also buoying risk appetite is a rally in emerging market assets from stocks to currencies, with some investors buying back in after the rout.
Elsewhere, West Texas crude dropped after U.S. President Donald Trump resumed his criticism of OPEC on Twitter. The Organization of Petroleum Exporting Countries and its allies are due to meet in Algiers this weekend. The pound held on to gains triggered by better-than-expected August retail sales data.
