Asia extended the global rally in stocks on Tuesday as a halt in a recent bond markets sell-off eased investor nerves and lifted riskier assets, although oil prices were on the defensive on fears of slowing Chinese energy consumption.
The Australian dollar and other riskier currencies recovered some lost ground against the U.S. dollar on Monday, after suffering their biggest plunges in a year at the end of last week amid a hefty sell-off in global bond markets.
Oil was up, rising more than $1 on Monday morning in Asia thanks to growing optimism about the global economic recovery from COVID-19. Increased prospects of a huge U.S. stimulus package and the country’s approval of a third COVID-19 vaccine also raised fuel demand recovery hopes.
Gold steadied after its biggest monthly slump since late 2016 as investor focus remained on bond yields and the outlook for growth.
Asian shares rallied on Monday as some semblance of calm returned to bond markets after last week’s wild ride, while progress in the huge U.S. stimulus package underpinned optimism about the global economy and sent oil prices higher.
Analysis of key markets.